Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity Registrant Name | FIRST BANCSHARES INC /MS/ | |
Entity Central Index Key | 0000947559 | |
Trading Symbol | FBMS | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,138,248 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 77,032 | $ 71,356 |
Interest-bearing deposits with banks | 88,952 | 87,751 |
Federal funds sold | 0 | 0 |
Total cash and cash equivalents | 165,984 | 159,107 |
Securities held-to-maturity, at amortized cost | 6,396 | 6,000 |
Securities available-for-sale, at fair value | 598,607 | 492,224 |
Other securities | 17,819 | 16,704 |
Total securities | 622,822 | 514,928 |
Loans held for sale | 8,597 | 4,838 |
Loans | 2,351,998 | 2,060,422 |
Allowance for loan losses | (12,091) | (10,065) |
Loans, net | 2,348,504 | 2,055,195 |
Interest receivable | 12,828 | 10,778 |
Premises and equipment | 97,115 | 74,783 |
Cash surrender value of bank-owned life insurance | 58,971 | 50,796 |
Goodwill | 119,202 | 89,750 |
Other real estate owned | 11,205 | 10,869 |
Other assets | 35,953 | 37,780 |
TOTAL ASSETS | 3,472,584 | 3,003,986 |
Deposits: | ||
Noninterest-bearing | 645,838 | 570,148 |
Interest-bearing | 2,185,362 | 1,887,311 |
TOTAL DEPOSITS | 2,831,200 | 2,457,459 |
Interest payable | 1,785 | 1,519 |
Borrowed funds | 71,250 | 85,500 |
Subordinated debentures | 80,600 | 80,521 |
Other liabilities | 21,468 | 15,733 |
TOTAL LIABILITIES | 3,006,303 | 2,640,732 |
STOCKHOLDERS' EQUITY: | ||
Common stock, par value $1 per share, 40,000,000 shares authorized; 17,299,975 shares issued at June 30, 2019, and 14,587,092 shares issued at December 31, 2018, respectively | 17,300 | 14,857 |
Additional paid-in capital | 355,217 | 278,659 |
Retained earnings | 89,231 | 71,998 |
Accumulated other comprehensive gain (loss) | 9,439 | (1,796) |
Treasury stock, at cost, 170,060 shares at June 30, 2019 and 26,494 Shares at December 31, 2018 | (4,906) | (464) |
TOTAL STOCKHOLDERS' EQUITY | 466,281 | 363,254 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 3,472,584 | $ 3,003,986 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 17,299,975 | 14,857,092 |
Treasury stock, shares | 170,060 | 26,494 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 32,464 | $ 21,714 | $ 61,269 | $ 37,699 |
Interest and dividends on securities: | ||||
Taxable interest and dividends | 4,241 | 2,423 | 7,832 | 4,409 |
Tax exempt interest | 790 | 758 | 1,548 | 1,433 |
Interest on federal funds sold and interest bearing deposits in other banks | 76 | 142 | 196 | 254 |
TOTAL INTEREST INCOME | 37,571 | 25,037 | 70,845 | 43,795 |
INTEREST EXPENSE: | ||||
Interest on deposits | 5,322 | 2,547 | 9,686 | 4,387 |
Interest on borrowed funds | 1,477 | 921 | 3,255 | 1,459 |
TOTAL INTEREST EXPENSE | 6,799 | 3,468 | 12,941 | 5,846 |
NET INTEREST INCOME | 30,772 | 21,569 | 57,904 | 37,949 |
PROVISION FOR LOAN LOSSES | 791 | 857 | 1,913 | 1,134 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 29,981 | 20,712 | 55,991 | 36,815 |
NON-INTEREST INCOME: | ||||
TOTAL NON-INTEREST INCOME | 6,716 | 5,632 | 12,270 | 9,091 |
NON-INTEREST EXPENSES: | ||||
Salaries and employee benefits | 11,615 | 9,502 | 22,312 | 17,291 |
Occupancy and equipment | 2,532 | 2,034 | 4,974 | 3,680 |
Acquisition and integration charges | 91 | 3,838 | 3,270 | 5,596 |
Other | 6,653 | 4,306 | 12,230 | 7,710 |
TOTAL NON-INTEREST EXPENSES | 20,891 | 19,680 | 42,786 | 34,277 |
INCOME BEFORE INCOME TAXES | 15,806 | 6,664 | 25,475 | 11,629 |
INCOME TAXES | 3,823 | 1,419 | 5,857 | 2,427 |
NET INCOME | $ 11,983 | $ 5,245 | $ 19,618 | $ 9,202 |
BASIC EARNINGS PER SHARE | $ 0.70 | $ 0.40 | $ 1.20 | $ 0.75 |
DILUTED EARNINGS PER SHARE | $ 0.69 | $ 0.40 | $ 1.19 | $ 0.74 |
Service charges on deposit accounts | ||||
NON-INTEREST INCOME: | ||||
TOTAL NON-INTEREST INCOME | $ 1,918 | $ 1,341 | $ 3,750 | $ 2,368 |
Other service charges and fees | ||||
NON-INTEREST INCOME: | ||||
TOTAL NON-INTEREST INCOME | $ 4,798 | $ 4,291 | $ 8,520 | $ 6,723 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income per consolidated statements of income | $ 11,983 | $ 5,245 | $ 19,618 | $ 9,202 |
Other Comprehensive Income: | ||||
Unrealized holding gains/(losses) arising during period on available-for-sale securities | 7,117 | (926) | 15,140 | (5,410) |
Reclassification adjustment for (gains)/losses included in net income | (36) | 0 | (74) | 0 |
Unrealized holding gains/(losses) arising during period on available-for-sale securities | 7,081 | (926) | 15,066 | (5,410) |
Income tax (expense) benefit | (1,768) | 234 | (3,831) | 1,367 |
Other comprehensive income (loss) | 5,313 | (692) | 11,235 | (4,043) |
Comprehensive Income | $ 17,296 | $ 4,553 | $ 30,853 | $ 5,159 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Beginning Balance at Dec. 31, 2017 | $ 11,192 | $ 158,456 | $ 53,722 | $ (438) | $ (464) | $ 222,468 |
Beginning Balance (in shares) at Dec. 31, 2017 | 11,192,401 | (26,494) | ||||
Net income | 9,202 | 9,202 | ||||
Other comprehensive income | (4,043) | (4,043) | ||||
Dividends on common stock, $0.08 and $0.15 per share for three and six month ended June 30, 2019, $0.05 and $0.10 per share for the three and six month ended June 30, 2018, respectively | (1,206) | (1,206) | ||||
Issuance of 1,134,010 common shares for Southwest acquisition | $ 1,134 | 34,871 | 36,005 | |||
Issuance of 1,134,010 common shares for Southwest acquisition (in shares) | 1,134,010 | |||||
Issuance of 726,461 common shares for Sunshine acquisition | $ 726 | 22,702 | 23,428 | |||
Issuance of 726,461 common shares for Sunshine acquisition (in shares) | 726,461 | |||||
Issuance restricted stock grants | $ 52 | (52) | ||||
Issuance restricted stock grants (in shares) | 51,851 | |||||
Restricted stock grants Forfeited | $ (12) | 12 | ||||
Restricted stock grants Forfeited (in shares) | (12,276) | |||||
Expenses associated with common stock issuance | (237) | (237) | ||||
Compensation Expense | 558 | 558 | ||||
ASU 2016-01 Implementation | (349) | (349) | ||||
Ending Balance at Jun. 30, 2018 | $ 13,092 | 216,310 | 61,369 | (4,481) | $ (464) | 285,826 |
Ending Balance (in shares) at Jun. 30, 2018 | 13,092,447 | (26,494) | ||||
Beginning Balance at Mar. 31, 2018 | $ 12,366 | 193,302 | 57,124 | (3,789) | $ (464) | 258,539 |
Beginning Balance (in shares) at Mar. 31, 2018 | 12,365,986 | (26,494) | ||||
Net income | 5,245 | 5,245 | ||||
Other comprehensive income | (692) | (692) | ||||
Dividends on common stock, $0.08 and $0.15 per share for three and six month ended June 30, 2019, $0.05 and $0.10 per share for the three and six month ended June 30, 2018, respectively | (651) | (651) | ||||
Issuance of 726,461 common shares for Sunshine acquisition | $ 726 | 22,702 | 23,428 | |||
Issuance of 726,461 common shares for Sunshine acquisition (in shares) | 726,461 | |||||
Compensation Expense | 306 | 306 | ||||
ASU 2016-01 Implementation | (349) | (349) | ||||
Ending Balance at Jun. 30, 2018 | $ 13,092 | 216,310 | 61,369 | (4,481) | $ (464) | 285,826 |
Ending Balance (in shares) at Jun. 30, 2018 | 13,092,447 | (26,494) | ||||
Beginning Balance at Dec. 31, 2018 | $ 14,857 | 278,659 | 71,998 | (1,796) | $ (464) | 363,254 |
Beginning Balance (in shares) at Dec. 31, 2018 | 14,857,092 | (26,494) | ||||
Net income | 19,618 | 19,618 | ||||
Common stock repurchased | $ (4,442) | (4,442) | ||||
Common stock repurchased (in shares) | (143,566) | |||||
Other comprehensive income | 11,235 | 11,235 | ||||
Dividends on common stock, $0.08 and $0.15 per share for three and six month ended June 30, 2019, $0.05 and $0.10 per share for the three and six month ended June 30, 2018, respectively | (2,385) | (2,385) | ||||
Issuance of 726,461 common shares for Sunshine acquisition | $ 2,378 | 75,842 | 78,220 | |||
Issuance of 726,461 common shares for Sunshine acquisition (in shares) | 2,377,501 | |||||
Issuance restricted stock grants | $ 67 | (67) | ||||
Issuance restricted stock grants (in shares) | 66,882 | |||||
Restricted stock grants Forfeited | $ (2) | 2 | ||||
Restricted stock grants Forfeited (in shares) | (1,500) | |||||
Compensation Expense | 781 | 781 | ||||
Ending Balance at Jun. 30, 2019 | $ 17,300 | 355,217 | 89,231 | 9,439 | $ (4,906) | 466,281 |
Ending Balance (in shares) at Jun. 30, 2019 | 17,299,975 | (170,060) | ||||
Beginning Balance at Mar. 31, 2019 | $ 17,299 | 354,792 | 78,594 | 4,126 | $ (464) | 454,347 |
Beginning Balance (in shares) at Mar. 31, 2019 | 17,299,225 | (26,494) | ||||
Net income | 11,983 | 11,983 | ||||
Common stock repurchased | $ (4,442) | (4,442) | ||||
Common stock repurchased (in shares) | (143,566) | |||||
Other comprehensive income | 5,313 | 5,313 | ||||
Dividends on common stock, $0.08 and $0.15 per share for three and six month ended June 30, 2019, $0.05 and $0.10 per share for the three and six month ended June 30, 2018, respectively | (1,346) | (1,346) | ||||
Issuance restricted stock grants | $ (1) | 1 | ||||
Issuance restricted stock grants (in shares) | 750 | |||||
Compensation Expense | 426 | 426 | ||||
Ending Balance at Jun. 30, 2019 | $ 17,300 | $ 355,217 | $ 89,231 | $ 9,439 | $ (4,906) | $ 466,281 |
Ending Balance (in shares) at Jun. 30, 2019 | 17,299,975 | (170,060) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Dividends on common stock, per Share | $ 0.08 | $ 0.05 | $ 0.15 | $ 0.10 |
Southwest acquisition | ||||
Stock Issued During Period, Shares, Acquisitions | 2,377,501 | 1,134,010 | ||
Sunshine acquisition | ||||
Stock Issued During Period, Shares, Acquisitions | 726,461 | 726,461 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET INCOME | $ 19,618 | $ 9,202 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 1,297 | 2,121 |
Provision for loan losses | 1,913 | 1,134 |
Loss on sale/writedown of ORE | 382 | 52 |
Securities (gain)/losses | (74) | |
Loss on sale of premises and equipment | 8 | |
Restricted stock expense | 781 | 558 |
Increase in cash value of life insurance | (863) | (411) |
Federal Home Loan Bank stock dividends | (101) | (64) |
Payments on operating leases | (350) | |
Changes in: | ||
Interest receivable | (691) | (17) |
Loans held for sale, net | (3,772) | (1,121) |
Interest payable | 191 | 696 |
Other, net | (1,183) | (269) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 17,156 | 11,881 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Maturities, calls and paydowns of available-for-sale and held-to-maturity securities | 44,075 | 30,021 |
Proceeds from sales of securities available-for-sale | 23,003 | 18,573 |
Purchases of available-for-sale securities | (67,147) | (57,039) |
Redemptions of other securities | 292 | 2,436 |
Net increase in loans | (45,357) | (48,042) |
Net increase in premises and equipment | (4,427) | (2,424) |
Proceeds from sale of other real estate owned | 1,107 | 985 |
Proceeds from the sale of land | 422 | |
Proceeds from the sale of other assets | 65 | |
Cash received in excess of cash paid for acquisitions | 14,743 | 29,901 |
NET CASH USED IN INVESTING ACTIVITIES | (33,224) | (25,589) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase in deposits | 61,254 | 117,435 |
Net decrease in borrowed funds | (31,500) | (138,664) |
Dividends paid on common stock | (2,367) | (1,188) |
Expenses associated with capital raise | (237) | |
Cash paid to repurchase common stock | (4,442) | |
Issuance of subordinated debt, net | 64,866 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 22,945 | 42,212 |
NET INCREASE IN CASH | 6,877 | 28,504 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 159,107 | 91,921 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 165,984 | 120,425 |
SUPPLEMENTAL DISCLOSURES: | ||
Cash payments for interest | 5,008 | 4,964 |
Loans transferred to other real estate | 1,310 | 985 |
Issuance of restricted stock grants | 67 | 52 |
Stock issued in connection | 36,005 | |
Dividends on restricted stock grants | 18 | 18 |
Right-of-use assets obtained in exchange for operating lease liabilities | 4,354 | |
Southwest acquisition | ||
SUPPLEMENTAL DISCLOSURES: | ||
Stock issued in connection | 36,005 | |
Sunshine acquisition | ||
SUPPLEMENTAL DISCLOSURES: | ||
Stock issued in connection | $ 23,428 | |
FPB acquisition | ||
SUPPLEMENTAL DISCLOSURES: | ||
Stock issued in connection | $ 78,220 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 — BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and the instructions to Form 10‑Q of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10‑K for the fiscal year ended December 31, 2018. |
SUMMARY OF ORGANIZATION
SUMMARY OF ORGANIZATION | 6 Months Ended |
Jun. 30, 2019 | |
SUMMARY OF ORGANIZATION | |
SUMMARY OF ORGANIZATION | NOTE 2 — SUMMARY OF ORGANIZATION The First Bancshares, Inc., Hattiesburg, Mississippi (the "Company"), was incorporated June 23, 1995, under the laws of the State of Mississippi for the purpose of operating as a bank holding company. The Company’s primary asset is its interest in its wholly-owned subsidiary, The First, A National Banking Association (the “Bank” or “The First”). At June 30, 2019, the Company had approximately $3.473 billion in assets, $2.349 billion in net loans, $2.831 billion in deposits, and $466.3 million in stockholders’ equity. For the six months ended June 30, 2019, the Company reported net income of $19.6 million. After tax merger related costs of $2.5 million were expensed during the six months ended June 30, 2019. On May 24, 2019, the Company paid a cash dividend in the amount of $0.08 per share to shareholders of record as of the close of business on Friday, May 10, 2019. On February 26, 2019, the Company paid a cash dividend in the amount of $0.07 per share to shareholders of record as of the close of business on Monday, February 11, 2019. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2019 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 — RECENT ACCOUNTING PRONOUNCEMENTS In March 2019, the FASB issued ASU No. 2019-01, Leases: Codification Improvements. ASU 2019-01 provides clarification to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. This ASU (1) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (2) allows for the payments received from sales-type and direct financing leases to continue to be presented as results from investing activities in the statement of cash flows, and (3) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. ASU 2019-01 will be effective on January 1, 2020 and will not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018‑13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018‑11 eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018‑13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect for early adoption the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The revised disclosure requirements will not have a material impact on the Company’s Consolidated Financial Statements. In June 2018, the FASB issued ASU No. 2018‑07, Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018‑07 has been issued as part of a simplification initiative which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees and expands the scope through the amendments to address and improve aspects of the accounting for non-employee share-based payment transactions. The amendments were effective for interim and annual reporting periods beginning after December 15, 2018. ASU 2018‑07 did not have a material impact on the Company's Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The guidance is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing ASU 2018-15 and the impact the new standard will have on its Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017‑04, “Simplifying the Test for Goodwill Impairment.” ASU 2017‑04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This guidance is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company is currently assessing the impact of ASU 2017‑04 on its Consolidated Financial Statements. In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016‑13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . ASU 2016‑13 requires a new impairment model known as the current expected credit loss (“CECL”) which significantly changes the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of financial instruments. The main provisions of ASU 2016‑13 include (1) replacing the “incurred loss” approach under current GAAP with an “expected loss” model for instruments measured at amortized cost, (2) requiring entities to record an allowance for credit losses related to available-for-sale debt securities rather than a direct write-down of the carrying amount of the investments, as is required by the other-than-temporary-impairment model under current GAAP, and (3) a simplified accounting model for purchased credit-impaired debt securities and loans. ASU 2016‑13 is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted. The Company is currently working with a third party to assess the impact of the adoption of ASU 2016-13 on its Consolidated Financial Statements. While we are currently unable to reasonably estimate the impact of the adoption of ASU 2016-13, we expect that the impact of adoption could be influenced by the composition, characteristics and quality of our loan portfolio as well as the prevailing economic conditions and forecasts as of the adoption date. As part of our implementation process, the working group that is responsible for quarterly allowance for loan and lease losses (“ALLL”) model review and approval, also serves as the Bank’s CECL Implementation Team. These individuals come from various functional areas including Accounting, Credit Administration, Risk Management and Portfolio Management; as well as the CEO. The Bank has engaged the same third party vendor that currently provides ALLL modeling software and support to assist with the development of a CECL model that will be ready for use as of the adoption date. During the development phase of building a model specific to the needs of the Bank, concurrent CECL modeling will be performed to generate a loss projection using the new model for each quarter of 2019. This model estimate will be reviewed and discussed by the Implementation Team after each quarterly run as it does with the current ALLL Model. The Implementation Team will provide direction to management and the third party vendor throughout the implementation process. In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842).” ASU 2016-02 establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating with classification affecting the pattern of expense recognition in the income statement. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If neither risks and rewards nor control is conveyed, an operating lease results. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with certain practical expedients available. Early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases – Targeted Improvements. ASU 2018-11 provides entities with relief from the costs of implementing certain aspects of ASU 2016-02. Under the amendments in ASU 2018-11 entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard and lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02, January 1, 2019. We elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and did not restate comparative periods. Our operating leases relate primarily to bank branches. As a result of the adoption of ASC 842 on January 1, 2019, we recorded operating lease right-of-use (“ROU”) assets of $1.8 million and lease liabilities of $1.8 million. ROU assets are adjusted for lease incentives. The adoption of ASC 842 did not have a material impact on our Consolidated Statements of Income or Consolidated Statements of Cash Flows compared to the prior lease accounting model. The ROU asset and operating lease liability are recorded in premises and equipment and other liabilities, respectively, in the Consolidated Balance Sheets. See Note 12 – Leases for additional information. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2019 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | NOTE 4 – BUSINESS COMBINATIONS Acquisitions FPB Financial Corp. On March 2, 2019, the Company completed its acquisition of FPB Financial Corp., (“FPB”), and immediately thereafter merged its wholly-owned subsidiary, Florida Parishes Bank with and into The First. The company paid a total consideration of approximately $78.2 million in stock to the FPB shareholders as consideration in the merger, which included 2,377,501 shares of Company common stock, and approximately $5 thousand in cash. In connection with the acquisition, the Company recorded approximately $29.6 million of goodwill and $4.8 million of core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. The Company acquired the $247.8 million loan portfolio at an estimated fair value discount of $3.1 million. The discount represents expected credit losses, adjusted for market interest rates and liquidity adjustments. Expenses associated with the acquisition were $2.1 million for the six months period ended June 30, 2019. These costs included system conversion and integrating operations charges and legal and consulting expenses, which have been expensed as incurred. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed on March 2, 2019 ($ in thousands): Purchase price: $ Cash and stock 78,225 Total purchase price 78,225 Identifiable assets: Cash and due from banks 14,748 Investments 93,604 Loans 244,665 Bank owned life insurance 7,312 Core deposit intangible 4,793 Personal and real property 17,358 Other assets 2,135 Total assets 384,615 Liabilities and equity: Deposits 312,453 Borrowed funds 17,250 Other liabilities 6,291 Total liabilities 335,994 Net assets acquired 48,621 Goodwill resulting from acquisition $ 29,604 The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the date of acquisition and at June 30, 2019, are as follows ($ in thousands): June 30, March 2, 2019 2019 Outstanding principal balance $ 247,774 $ 231,928 Carrying amount 244,665 229,208 Purchased credit impaired loans are detailed in Note 10 – Loans. FMB Financial Corp. On November 1, 2018, the Company completed its acquisition of FMB Banking Corporation (“FMB”), and immediately thereafter merged its wholly-owned subsidiary, Farmers & Merchants Bank, with and into The First. The Company paid a total consideration of approximately $79.5 million to the former FMB shareholders including 1,763,042 shares of the Company’s common stock and approximately $16.0 million in cash. In connection with the acquisition, the Company recorded approximately $36.2 million of goodwill and $10.2 million of core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. The Company acquired FMB’s $325.5 million loan portfolio at an estimated fair value discount of $7.6 million. The discount represents expected credit losses, adjusted for market interest rates and liquidity adjustments. Expenses associated with the acquisition were $556 thousand for the six months period ended June 30, 2019. These costs included system conversion and integrating operations charges and legal and consulting expenses, which have been expensed as incurred. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed on November 1, 2018 ($ in thousands): Purchase price: Cash and stock $ 79,547 Total purchase price 79,547 Identifiable assets: Cash and due from banks 28,556 Investments 97,331 Loans 317,909 Bank owned life insurance 13,639 Core deposit intangible 10,203 Personal and real property 15,204 Other assets 3,054 Total assets 485,896 Liabilities and equity: Deposits 431,276 Borrowed funds 5,369 Other liabilities 5,894 Total liabilities 442,539 Net assets acquired 43,357 Goodwill resulting from acquisition $ 36,190 The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the acquisition date and at June 30, 2019, are as follows ($ in thousands): June 30, November 1, 2018 2019 Outstanding principal balance $ 325,509 $ 272,947 Carrying amount 317,909 266,883 Purchased credit impaired loans are detailed in Note 10 – Loans. Sunshine Financial, Inc. On April 1, 2018, the Company completed its acquisition of Sunshine Financial, Inc., (“Sunshine”), and immediately thereafter merged its wholly-owned subsidiary, Sunshine Community Bank, with and into The First. The Company paid a total consideration of $30.5 million to the Sunshine shareholders as consideration in the merger which included 726,461 shares of Company common stock and $7 million in cash. In connection with the acquisition, the Company recorded $9.5 million of goodwill and $4.1 million of core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. The Company acquired the $173.1 million loan portfolio at an estimated fair value discount of $4.5 million. The discount represents expected credit losses, adjusted for market interest rates and liquidity adjustments. Expenses associated with the acquisition were $250 thousand for the six months period ended June 30, 2019. These costs included system conversion and integrating operations charges as well as legal and consulting expenses, which have been expensed as incurred. The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the date of acquisition and at June 30, 2019, are as follows ($ in thousands): April 1, 2018 June 30, 2019 Outstanding principal balance $ 173,052 $ 152,583 Carrying amount 168,561 149,665 Purchased credit impaired loans are detailed in Note 10 – Loans. Southwest Banc Shares, Inc. On March 1, 2018, the Company completed its acquisition of Southwest Banc Shares, Inc., (“Southwest”), and immediately thereafter merged its wholly-owned subsidiary, First Community Bank, with and into The First. The Company paid a total consideration of $60.0 million to the Southwest shareholders as consideration in the merger which included 1,134,010 shares of Company common stock and $24 million in cash. In connection with the acquisition, the Company recorded $23.9 million of goodwill and $5.8 million of core deposit intangible. Goodwill is not deductible for income taxes. The core deposit intangible will be amortized to expense over 10 years. The Company acquired the $274.7 million loan portfolio at an estimated fair value discount of $3.5 million. The discount represents expected credit losses, adjusted for market interest rates, and liquidity adjustments. Expenses associated with the acquisition were $368 thousand for the six months period ended June 30, 2019. These costs included systems conversions and integrating operations charges, as well as legal and consulting expenses, which have been expensed as incurred. The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the date of acquisition and at June 30, 2019, are as follows ($ in thousands): March 1, 2018 June 30, 2019 Outstanding principal balance $ 274,669 $ 174,041 Carrying amount 271,150 172,343 Purchased credit impaired loans are detailed in Note 10 – Loans. Supplemental Pro-Forma Financial Information The following unaudited pro-forma financial data for the six months ended June 30, 2019 and June 30, 2018 presents supplemental information as if the Southwest, Sunshine, FMB, and FPB acquisitions had occurred on January 1, 2018. The pro-forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of these dates. Pro-Forma Pro-Forma Six Months Six Months Ended Ended June 30, June 30, ($ in thousands) 2019 2018 (unaudited) (unaudited) Net interest income $ 62,961 $ 50,032 Non-interest income 11,983 11,515 Total revenue 74,944 61,547 Income before income taxes 34,354 22,224 Supplemental pro-forma earnings were adjusted to exclude acquisition costs incurred. Non-credit impaired loans acquired in the acquisitions were accounted for in accordance with ASC 310-20, Receivables-Nonrefundable Fees and Other Costs. Purchased credit impaired loans acquired in the Southwest, Sunshine, FMB and FPB acquisitions were accounted for in accordance with ASC 310-30 Accounting for Purchased Loans with Deteriorated Credit Quality. |
EARNINGS APPLICABLE TO COMMON S
EARNINGS APPLICABLE TO COMMON STOCKHOLDERS | 6 Months Ended |
Jun. 30, 2019 | |
EARNINGS APPLICABLE TO COMMON STOCKHOLDERS | |
EARNINGS APPLICABLE TO COMMON STOCKHOLDERS | NOTE 5 — EARNINGS APPLICABLE TO COMMON STOCKHOLDERS Basic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such as restricted stock grants. There were no antidilutive common stock equivalents excluded in the calculations. The following tables disclose the reconciliation of the numerators and denominators of the basic and diluted computations applicable to common stockholders ($in thousands, except per share amount): For the Three Months Ended June 30, 2019 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 11,983 17,182 $ 0.70 Effect of dilutive shares: Restricted stock grants 130 Diluted earnings per share $ 11,983 17,312 $ 0.69 For the Six Months Ended June 30, 2019 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 19,618 16,414 $ 1.20 Effect of dilutive shares: Restricted stock grants 130 Diluted earnings per share $ 19,618 16,544 $ 1.19 For the Three Months Ended June 30, 2018 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 5,245 13,066 $ 0.40 Effect of dilutive shares: Restricted stock grants 102 Diluted earnings per share $ 5,245 13,168 $ 0.40 For the Six Months Ended June 30, 2018 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 9,202 12,311 $ 0.75 Effect of dilutive shares: Restricted stock grants 102 Diluted earnings per share $ 9,202 12,413 $ 0.74 The Company granted 66,132 shares of restricted stock in the first quarter of 2019 and 51,851 shares of restricted stock in the first quarter of 2018. The Company granted 750 shares of restricted stock in the second quarter of 2019 and made no grants of restricted stock during the second quarter of 2018. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2019 | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | NOTE 6 – COMPREHENSIVE INCOME As presented in the Consolidated Statements of Comprehensive Income, comprehensive income includes net income and other comprehensive income. The Company’s sources of other comprehensive income are unrealized gains and losses on available-for-sale debt securities. Gains or losses on debt securities that had previously been included in other comprehensive income as unrealized holding gains or losses in the period in which they arose were realized and reflected in net income of the current period, and as a result are considered to be reclassification adjustments that are excluded from other comprehensive income in the current period. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 6 Months Ended |
Jun. 30, 2019 | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 7 – FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. At June 30, 2019, and December 31, 2018, these financial instruments consisted of the following: June 30, 2019 December 31, 2018 ($ in thousands) Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 74,224 $ 8,857 $ 32,624 $ 36,780 Unused lines of credit 111,229 199,977 115,524 131,741 Commercial & similar letters of credit 2,354 8,759 2,357 8,367 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 0.5% to 19.7% and maturities ranging from approximately 1 year to 30 years. |
FAIR VALUE DISCLOSURES AND REPO
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | NOTE 8 – FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS FASB’s standards on financial instruments, and on fair value measurements and disclosures, require all entities to disclose in their financial statement footnotes the estimated fair values of financial instruments for which it is practicable to estimate fair values. In addition to disclosure requirements, FASB’s standard on investments requires that our debt securities which are classified as available-for-sale and our equity securities that have readily determinable fair values be measured and reported at fair value in our Consolidated Financial Statements. Certain impaired loans are also reported at fair value, as explained in greater detail below, and foreclosed assets are carried at the lower of cost or fair value. FASB’s standard on financial instruments permits companies to report certain other financial assets and liabilities at fair value, but we have not elected the fair value option for any of those financial instruments. Fair value measurement and disclosure standards also establish a framework for measuring fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Further, the standards establish a fair value hierarchy that encourages an entity to maximize the use of observable inputs and limit the use of unobservable inputs when measuring fair values. The standards describe three levels of inputs that may be used to measure fair values: · Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. · Level 2 : Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. · Level 3 : Significant unobservable inputs that reflect a company’s own assumptions about the factors that market participants would likely consider in pricing an asset or liability. Fair value estimates are made at a specific point in time based on relevant market data and information about the financial instruments. The estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to realized gains and losses could have a significant effect on fair value estimates but have not been considered in those estimates. Because no active market exists for a significant portion of our financial instruments, fair value disclosures are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. The estimates are subjective and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly alter the fair values presented. The following methods and assumptions were used by the Company to estimate its financial instrument fair values disclosed at June 30, 2019 and December 31, 2018: · Cash and cash equivalents and fed funds sold : The carrying amount is estimated to be fair value. · Securities (available-for-sale, held-to-maturity and other) : The fair value for securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). · Loans and leases : The fair value of loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made for the same remaining maturities, in accordance with the exit price notion as defined by FASB ASC 820, Fair Value Measurement ("ASC 820"). Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments and as a result of the adoption of ASU 2016-01, which also included credit risk and other market factors to calculate the exit price fair value in accordance with ASC 820. Starting with the first quarter of 2018, the Company began using an exit price notion when measuring the fair value of its loan portfolio, excluding loans held for sale, for disclosure purposes. · Loans held for sale : Since loans designated by the Company as available-for-sale are typically sold shortly after making the decision to sell them, realized gains or losses are usually recognized within the same period and fluctuations in fair values are not relevant for reporting purposes. If available-for-sale loans are held on our books for an extended period of time, the fair value of those loans is determined using quoted secondary-market prices. · Collateral-dependent impaired loans : Collateral-dependent impaired loans are carried at fair value when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement and the loan has been written down to the fair value of its underlying collateral, net of expected disposition costs where applicable. · Accrued interest receivable : The carrying amount of accrued interest receivable approximates its fair value and is classified as level 2 for accrued interest receivable related to investment securities and Level 3 for accrued interest receivable related to loans. · Deposits (non-interest-bearing and interest-bearing) : Fair values for non-maturity deposits are equal to the amount payable on demand at the reporting date, which is the carrying amount. Fair values for fixed-rate certificates of deposit are estimated using a cash flow analysis, discounted at interest rates being offered at each reporting date by the Bank for certificates with similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value. · FHLB and other borrowings : Current carrying amounts are used as an approximation of fair values for federal funds purchased, overnight advances from the Federal Home Loan Bank (“FHLB”), borrowings under repurchase agreements, and other short-term borrowings maturing within ninety days of the reporting dates. Fair values of other short-term borrowings are estimated by discounting projected cash flows at the Company’s current incremental borrowing rates for similar types of borrowing arrangements. · Long-term borrowings : Fair values are estimated using projected cash flows discounted at the Company’s current incremental borrowing rates for similar types of borrowing arrangements. · Subordinated debentures : Fair values are determined based on the current market value for like instruments of a similar maturity and structure. · Accrued interest payable : The carrying amount of accrued interest payable approximates its fair value resulting in a Level 2 classification. · Off-balance sheet instruments : Fair values of off-balance sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value until such commitments are funded or closed. Management has determined that these instruments do not have a distinguishable fair value and no fair value has been assigned. Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: As of June 30, 2019 Fair Value Measurements Significant Other Significant Observable Unobservable Carrying Estimated Quoted Prices Inputs Inputs ($ in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 165,984 $ 165,984 $ 165,984 $ — $ — Securities available-for- sale: Obligations of U.S. Government agencies and sponsored entities 65,618 65,618 — 65,618 — Municipal securities 161,890 161,890 — 150,837 11,053 Mortgage- backed securities 360,479 360,479 — 360,479 — Corporate obligations 10,620 10,620 — 10,192 428 Securities held- to-maturity 6,396 7,627 — 7,627 — Loans, net 2,348,504 2,315,729 — — 2,315,729 Accrued interest receivable 12,828 12,828 — 3,338 9,490 Liabilities: Non-interest-bearing deposits $ 645,838 $ 645,838 $ — $ 645,838 $ — Interest-bearing deposits 2,185,362 2,175,841 — 2,175,841 — Subordinated debentures 80,600 77,950 — — 77,950 FHLB and other borrowings 71,250 71,250 — 71,250 — Accrued interest payable 1,785 1,785 — 1,785 — As of December 31, 2018 Fair Value Measurements Significant Other Significant Quoted Observable Unobservable Carrying Estimated Prices Inputs Inputs ($ in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 159,107 $ 159,107 $ 159,107 $ — $ — Securities available-for-sale: — — — — — Obligations of U.S. Government agencies and sponsored entities 47,342 47,342 — 47,342 — Municipal securities 150,064 150,064 — 142,490 7,574 Mortgage-backed securities 287,470 287,470 — 287,470 — Corporate obligations 7,348 7,348 — 6,474 874 Securities held-to-maturity 6,000 7,028 — 7,028 — Loans, net 2,055,195 2,020,782 — — 2,020,782 Accrued interest receivable 10,778 10,778 — 2,673 8,105 Liabilities: Noninterest-bearing deposits $ 570,148 $ 570,148 $ — $ 570,148 $ — Interest-bearing deposits 1,887,311 1,855,637 — 1,855,637 — Subordinated debentures 80,521 76,986 — — 76,986 FHLB and other borrowings 85,500 85,500 — 85,500 — Accrued interest payable 1,519 1,519 — 1,519 — Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, securities are classified within Level 2 of the valuation hierarchy, and fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities include U. S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Assets measured at fair value on a recurring basis are summarized below: June 30, 2019 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale Obligations of U. S. Government agencies and sponsored entities $ 65,618 $ — $ 65,618 $ — Municipal securities 161,890 — 150,837 11,053 Mortgage-backed securities 360,479 — 360,479 — Corporate obligations 10,620 — 10,192 428 Total available-for-sale $ 598,607 $ — $ 587,126 $ 11,481 December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale Obligations of U. S. Government agencies and sponsored entities $ 47,342 $ — $ 47,342 $ — Municipal securities 150,064 — 142,490 7,574 Mortgage-backed securities 287,470 — 287,470 — Corporate obligations 7,348 — 6,474 874 Total available-for-sale $ 492,224 $ — $ 483,776 $ 8,448 The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information. Bank-Issued Trust Preferred Securities ($ in thousands) 2019 2018 Balance, January 1 $ 874 $ 2,569 Unrealized (loss) gain included in comprehensive income (446) (1,695) Balance at June 30, 2019 and December 31, 2018 $ 428 $ 874 Municipal Securities ($ in thousands) 2019 2018 Balance, January 1 $ 7,574 $ 4,818 Unrealized (loss) gain included in comprehensive income 3,479 2,756 Balance at June 30, 2019 and December 31, 2018 $ 11,053 $ 7,574 The following methods and assumptions were used to estimate the fair values of the Company's assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018. The following tables presents quantitative information about recurring Level 3 fair value measurements ($in thousands): Significant Fair Valuation Unobservable Range of Trust Preferred Securities Value Technique Inputs Inputs June 30, 2019 $ 428 Discounted cash flow Probability of default 3.05% - 4.59% December 31, 2018 $ 874 Discounted cash flow Probability of default 3.71% - 5.03% Significant Fair Valuation Unobservable Range of Municipal Securities Value Technique Inputs Inputs June 30, 2019 $ 11,053 Discounted cash flow Discount Rate 2.00% - 2.80% December 31, 2018 $ 7,574 Discounted cash flow Discount Rate 2.00% - 3.50% Following is a description of the valuation methodologies used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Impaired Loans Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Such adjustments, if any, result in a Level 3 classification of the inputs for determining fair value. The Company generally adjusts the appraisal down by approximately 10 percent to account for selling costs. Non-real estate collateral may be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's expertise and knowledge of the client and client's business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment. Other Real Estate Owned Other real estate owned consists of properties obtained through foreclosure. The adjustment at the time of foreclosure is recorded through the allowance for loan losses. Fair value of other real estate owned is based on current independent appraisals of the collateral less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments, if any, result in a Level 3 classification of the inputs for determining fair value. In the determination of fair value subsequent to foreclosure, Management also considers other factors or recent developments, such as changes in market conditions from the time of valuation and anticipated sales values considering plans for disposition, which could result in an adjustment to lower the collateral value estimates indicated in the appraisals. The Company generally adjusts the appraisal down by approximately 10 percent to account for selling costs. Periodic revaluations are classified as Level 3 in the fair value hierarchy since assumptions are used that may not be observable in the market. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through other non-interest income. Operating costs associated with the assets after acquisition are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and recorded in other non-interest income. Other real estate measured at fair value on a non-recurring basis at June 30, 2019, amounted to $11.2 million. Other real estate owned is classified within Level 3 of the fair value hierarchy. The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at June 30, 2019 and December 31, 2018. June 30, 2019 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 11,474 $ — $ — $ 11,474 Other real estate owned 11,205 — — 11,205 December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 11,571 $ — $ — $ 11,571 Other real estate owned 10,869 — — 10,869 |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2019 | |
SECURITIES | |
SECURITIES | NOTE 9 - SECURITIES The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and valuation methodologies that management believes are appropriate. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at June 30, 2019 and December 31, 2018, follows: June 30, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Available-for-sale securities: Obligations of U.S. Government agencies and sponsored entities $ 63,456 $ 2,163 $ 1 $ 65,618 Tax-exempt and taxable obligations of states and municipal subdivisions 158,645 3,319 74 161,890 Mortgage-backed securities 353,271 7,442 234 360,479 Corporate obligations 10,635 88 103 10,620 Total $ 586,007 $ 13,012 $ 412 $ 598,607 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-maturity securities: Taxable obligations of states and municipal subdivisions $ 6,000 $ 1,237 $ — $ 7,237 Mortgage-backed securities 396 — 6 390 Total $ 6,396 $ 1,237 $ 6 $ 7,627 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Available-for-sale securities: Obligations of U.S. Government agencies sponsored entities $ 47,212 $ 405 $ 275 $ 47,342 Tax-exempt and taxable obligations of states and municipal subdivisions 150,215 1,070 1,221 150,064 Mortgage-backed securities 289,745 1,171 3,446 287,470 Corporate obligations 7,518 15 185 7,348 Total $ 494,690 $ 2,661 $ 5,127 $ 492,224 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-maturity securities: Taxable obligations of states and municipal subdivisions $ 6,000 $ 1,028 $ — $ 7,028 The scheduled maturities of securities at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair ($ in thousands) Cost Value Cost Value Due less than one year $ 22,825 $ 22,882 $ — $ — Due after one year through five years 76,709 77,897 — — Due after five years through ten years 94,170 97,489 6,000 7,237 Due greater than ten years 39,032 39,860 — — Mortgage-backed securities 353,271 360,479 396 390 Total $ 586,007 $ 598,607 $ 6,396 $ 7,627 December 31, 2018 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair ($ in thousands) Cost Value Cost Value Due less than one year $ 19,825 $ 19,794 $ — $ — Due after one year through five years 64,933 64,925 — — Due after five years through ten years 82,455 82,687 6,000 7,028 Due greater than ten years 37,732 37,348 — — Mortgage-backed securities 289,745 287,470 — — Total $ 494,690 $ 492,224 $ 6,000 $ 7,028 Actual maturities can differ from contractual maturities because the obligations may be called or prepaid with or without penalties. The details concerning securities classified as available-for-sale with unrealized losses as of June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Obligations of U.S. Government agencies and sponsored entities $ 80 $ — $ 177 $ 1 $ 257 $ 1 Tax-exempt and taxable obligations of state and municipal subdivisions 3,532 1 10,980 73 14,512 74 Mortgage-backed securities 8,552 30 30,714 204 39,266 234 Corporate obligations 1,973 1 455 102 2,428 103 Total $ 14,137 $ 32 $ 42,326 $ 380 $ 56,463 $ 412 December 31, 2018 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Obligations of U.S. Government agencies and sponsored entities $ 11,034 $ 52 $ 7,838 $ 223 $ 18,872 $ 275 Tax-exempt and taxable obligations of state and municipal subdivisions 38,200 311 42,102 910 80,302 1,221 Mortgage-backed securities 93,294 843 101,005 2,603 194,299 3,446 Corporate obligations 1,962 40 4,969 145 6,931 185 Total $ 144,490 $ 1,246 $ 155,914 $ 3,881 $ 300,404 $ 5,127 At June 30, 2019 and December 31, 2018, the Company’s securities portfolio consisted of 87 and 427 securities, respectively, which were in an unrealized loss position. The Company reviews its investment portfolio quarterly for indications of other-than-temporary impairment (“OTTI”), with attention given to securities in a continuous loss position of at least ten percent for over twelve months. Management believes that none of the losses on available-for-sale securities noted above constitutes an OTTI. The noted losses are considered temporary due to market fluctuations in available interest rates. Management considers the issuers of the securities to be financially sound, the corporate bonds are investment grade, and the collectability of all contractual principal and interest payments is reasonably expected. On January 1, 2018, the Company adopted the new accounting standard for Financial Instruments, which requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with the changes in fair value recognized in net income. The adoption of this guidance resulted in a $348 thousand decrease to retained earnings. No OTTI losses were recognized during the six months ended June 30, 2019 or the year ended December 31, 2018. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2019 | |
LOANS | |
LOANS | NOTE 10 – LOANS Generally, the Company will place a delinquent loan in non-accrual status when the loan becomes 90 days or more past due. At the time a loan is placed in non-accrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain. The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as non-accrual or purchased credit impaired ("PCI”): June 30, 2019 Past Due 90 Days Total Past Due or More Past Due, 30 to 89 and Still Non- Non-Accrual Total ($ in thousands) Days Accruing Accrual PCI and PCI Loans Real Estate-construction $ 811 $ 14 $ 211 $ 1,673 $ 2,709 $ 352,826 Residential secured loans including multi-family and farmland 3,606 911 851 8,678 14,046 713,350 Real Estate-nonfarm nonresidential 534 — 9,357 3,352 13,243 881,831 Commercial 826 64 1,333 80 2,303 342,535 Lease financing receivable — — — — — 3,616 Obligations of states and subdivisions — — — — — 17,192 Consumer installment 407 — 53 20 480 40,648 Total $ 6,184 $ 989 $ 11,805 $ 13,803 $ 32,781 $ 2,351,998 December 31, 2018 Past Due 90 Days Total Past Due or More Past Due, 30 to 89 and Still Non- Non-Accrual Total ($ in thousands) Days Accruing Accrual PCI and PCI Loans Real Estate-construction $ 818 $ 114 $ 8 $ 1,830 $ 2,770 $ 298,718 Residential secured loans including multi-family and farmland 5,528 650 1,411 7,781 15,370 617,804 Real Estate-nonfarm, nonresidential 4,319 456 9,179 3,576 17,530 776,880 Commercial 1,650 — 1,024 184 2,858 301,182 Lease financing receivable — — — — — 2,891 Obligations of states and subdivisions — — — — — 16,941 Consumer installment 507 45 46 34 632 46,006 Total $ 12,822 $ 1,265 $ 11,668 $ 13,405 $ 39,160 $ 2,060,422 We acquired loans with deteriorated credit quality in 2014, 2017, 2018 and 2019. These loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The acquired loans were segregated as of the acquisition date between those considered to be performing (purchased non-impaired loans) and those with evidence of credit deterioration (purchased credit impaired or PCI loans). Acquired loans are considered to be impaired if it is probable, based on current available information, that the Company will be unable to collect all cash flows as expected. If the collection of expected cash flows cannot reasonably be estimated, no interest income will be recognized on these loans. The following table presents information regarding the contractually required payments receivable, cash flows expected to be collected and the estimated fair value of PCI loans acquired in the acquisitions from 2018 and 2019. ($ in thousands) Southwest Sunshine FMB FPB Total Contractually required payments $ 925 $ 4,194 $ 9,939 $ 4,715 $ 19,773 Cash flows expected to be collected 706 3,894 8,604 4,295 17,499 Fair value of loans acquired 657 3,837 7,978 3,916 16,388 Total outstanding purchased credit impaired loans were $19.9 million and the related purchase accounting discount was $3.7 million as of June 30, 2019, and $17.7 million and $3.8 million as of December 31, 2018, respectively. The outstanding balance of these loans is the undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other under the loans, owed at the reporting date, whether or not currently due and whether or not any such amounts have been charged-off. There was no related allowance allocated to the acquired impaired loans. Changes in the accretable yield for purchased credit impaired loans were as follows at June 30, 2019 and 2018: June 30, 2019 June 30, 2018 Accretable Accretable ($ in thousands) Yield Yield Balance at beginning of period January 1 $ 3,835 $ 836 Reclassification from prior years — 859 Addition 307 762 Accretion (476) (200) Transfer from non-accretable 48 129 Charge-off — (10) Balance at end of period $ 3,714 $ 2,376 The following tables provide additional detail of impaired loans broken out according to class as of June 30, 2019 and December 31, 2018. The recorded investment included in the following tables represents customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at June 30, 2019 are on non-accrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90‑days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs. June 30, 2019 Average Interest Recorded Income Recorded Unpaid Related Investment Recognized ($ in thousands) Investment Balance Allowance YTD YTD Impaired loans with no related allowance: Commercial, financial and agriculture $ 671 $ 671 $ — $ 865 $ 11 Commercial real estate 3,421 3,896 — 9,100 2 Consumer real estate 545 643 — 4,076 1 Consumer installment 4 3 — 27 — Total $ 4,641 $ 5,213 $ — $ 14,068 $ 14 Impaired loans with a related allowance: Commercial, financial and agriculture $ 1,722 $ 1,723 $ 427 $ 2,506 $ 18 Commercial real estate 7,619 7,914 1,839 11,432 47 Consumer real estate 478 480 69 719 6 Consumer installment 61 61 37 99 1 Total $ 9,880 $ 10,178 $ 2,372 $ 14,756 $ 72 Total Impaired Loans: Commercial, financial and agriculture $ 2,393 $ 2,394 $ 427 $ 3,371 $ 29 Commercial real estate 11,040 11,810 1,839 20,532 49 Consumer real estate 1,023 1,123 69 4,795 7 Consumer installment 65 64 37 126 1 Total Impaired Loans $ 14,521 $ 15,391 $ 2,372 $ 28,824 $ 86 As of June 30, 2019, the Company had $1.8 million of foreclosed residential real estate property obtained by physical possession and $1.2 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process according to local jurisdictions. December 31, 2018 Average Interest Recorded Income Recorded Unpaid Related Investment Recognized ($ in thousands) Investment Balance Allowance YTD YTD Impaired loans with no related allowance: Commercial, financial and agriculture $ 709 $ 709 $ — $ 379 $ 27 Commercial real estate 6,441 8,170 — 7,685 427 Consumer real estate 445 760 — 4,522 69 Consumer installment — — — 82 3 Total $ 7,595 $ 9,639 $ — $ 12,668 $ 526 Impaired loans with a related allowance: Commercial, financial and agriculture $ 960 $ 960 $ 329 $ 968 $ 3 Commercial real estate 4,512 4,512 758 2,868 176 Consumer real estate 366 366 66 555 16 Consumer installment 26 26 26 24 — Total $ 5,864 $ 5,864 $ 1,179 $ 4,415 $ 195 Total Impaired Loans: Commercial, financial and agriculture $ 1,669 $ 1,669 $ 329 $ 1,347 $ 30 Commercial real estate 10,953 12,682 758 10,553 603 Consumer real estate 811 1,126 66 5,077 85 Consumer installment 26 26 26 106 3 Total Impaired Loans $ 13,459 $ 15,503 $ 1,179 $ 17,083 $ 721 Interest income recognized during impairment and cash basis interest income recognized on impaired loans was approximately $37 thousand and $159 thousand for the three months and six months ended June 30, 2019, respectively. The gross interest income that would have been recorded in the period that ended if the non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the three months and six months ended June 30, 2019 was $141 thousand and $550 thousand, respectively. The Company had no loan commitments to borrowers in non-accrual status at June 30, 2019 and December 31, 2018. Troubled Debt Restructuring If the Company grants a concession to a borrower in financial difficulty, the loan is classified as a troubled debt restructuring (“TDR”). There were 1 and 4 TDRs modified during the three months and six months ended June 30, 2019, respectively. There were no TDRs modified during the three months or six months ended June 30, 2018. The balance of TDRs was $16.9 million at June 30, 2019 and $14.3 million at December 31, 2018. The increase of $2.6 million is attributable to acquired loans. There was $247 thousand allocated in specific reserves established with respect to these loans as of June 30, 2019. As of June 30, 2019, the Company had no additional amount committed on any loan classified as TDR. The following tables set forth the amounts and past due status for the Company’s TDRs at June 30, 2019 and December 31, 2018: June 30, 2019 Past Due 90 days Current Past Due and still Non- ($ in thousands) Loans 30‑89 accruing accrual Total Commercial, financial and agriculture $ 543 $ 592 $ — $ 190 $ 1,325 Commercial real estate 5,216 59 — 5,166 10,441 Residential real estate 1,760 — 58 3,308 5,126 Consumer installment 30 — — — 30 Total $ 7,549 $ 651 $ 58 $ 8,664 $ 16,922 Allowance for loan losses $ 103 $ — $ — $ 144 $ 247 December 31, 2018 Past Due 90 days Current Past Due and still Non- ($ in thousands) Loans 30‑89 accruing accrual Total Commercial, financial and agriculture $ 13 $ 646 $ — $ 18 $ 676 Commercial real estate 4,827 — — 5,425 10,252 Residential real estate 442 86 — 2,801 3,329 Consumer installment 25 — — 13 38 Total $ 5,307 $ 732 $ — $ 8,257 $ 14,295 Allowance for loan losses $ 80 $ 13 $ — $ 110 $ 203 A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans and 1 loan, which totaled $86 thousand, that were modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the quarters ending June 30, 2019 and June 30, 2018, respectively. There were 12 loans, which totaled $4.7 million, and 3 loans, which totaled $381 thousand that were modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the six months ending June 30, 2019 and June 30, 2018, respectively. Internal Risk Ratings The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company uses the following definitions for risk ratings, which are consistent with the definitions used in supervisory guidance: Special Mention : Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard : Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk categories of loans by class of loans (excluding mortgage loans held for sale) were as follows: June 30, 2019 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Total Pass $ 342,390 $ 1,476,941 $ 439,998 $ 34,726 $ 2,294,055 Special Mention 1,117 7,527 1,951 26 10,621 Substandard 2,829 32,834 12,188 407 48,258 Doubtful 22 82 — — 104 Subtotal 346,358 1,517,384 454,137 35,159 2,353,038 Less: Unearned discount — 1,040 — — 1,040 Loans, net of unearned discount $ 346,358 $ 1,516,344 $ 454,137 $ 35,159 $ 2,351,998 December 31, 2018 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Total Pass $ 300,685 $ 1,286,151 $ 377,028 $ 34,127 $ 1,997,991 Special Mention 842 12,401 1,962 13 15,218 Substandard 2,640 33,856 10,959 270 47,725 Doubtful 16 85 — — 101 Subtotal 304,183 1,332,493 389,949 34,410 2,061,035 Less: Unearned discount — 613 — — 613 Loans, net of unearned discount $ 304,183 $ 1,331,880 $ 389,949 $ 34,410 $ 2,060,422 Allowance for Loan Losses Activity in the allowance for loan losses for the period was as follows: Six months ended June 30, 2019 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Unallocated Total Allowance for loan losses: Beginning balance $ 2,060 $ 6,258 $ 1,743 $ 201 $ (197) $ 10,065 Provision for loan losses 351 1,666 (313) (36) 245 1,913 Charge-offs 6 66 42 67 — 181 Recoveries 27 14 101 152 — 294 Net Charge-offs (recoveries) (21) 52 (59) (85) — (113) Ending Balance $ 2,432 $ 7,872 $ 1,489 $ 250 $ 48 $ 12,091 Six months ended June 30, 2018 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Unallocated Total Allowance for loan losses: Beginning balance $ 1,608 $ 4,644 $ 1,499 $ 173 $ 364 $ 8,288 Provision for loan losses 390 476 69 (20) 219 1,134 Charge-offs 5 10 7 32 — 54 Recoveries 18 26 37 63 — 144 Net Charge-offs (recoveries) (13) (16) (30) (31) — (90) Ending Balance $ 2,011 $ 5,136 $ 1,598 $ 184 $ 583 $ 9,512 The following tables provide the ending balances in the Company’s loans (excluding mortgage loans held for sale) and allowance for loan losses, broken down by portfolio segment as of June 30, 2019 and December 31, 2018. The tables also provide additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation. The impairment evaluation corresponds to the Company’s systematic methodology for estimating its Allowance for Loan Losses. See Item 2. – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Allowance for Loan and Lease Losses” for a description of our methodology. June 30, 2019 Commercial Financial Installment and Commercial Consumer and ($ in thousands) Agriculture Real Estate Real Estate Other Unallocated Total Loans Individually evaluated $ 2,393 $ 11,040 $ 1,023 $ 65 $ — $ 14,521 Collectively evaluated 359,396 1,539,832 377,635 40,708 — 2,317,571 PCI loans 183 12,113 7,560 50 — 19,906 Total $ 361,972 $ 1,562,985 $ 386,218 $ 40,823 — $ 2,351,998 Allowance for Loan Losses Individually evaluated $ 427 $ 1,839 $ 69 $ 37 $ — $ 2,372 Collectively evaluated 2,005 6,033 1,420 213 48 9,719 Total $ 2,432 $ 7,872 $ 1,489 $ 250 $ 48 $ 12,091 December 31, 2018 Commercial Financial Installment and Commercial Consumer and ($ in thousands) Agriculture Real Estate Real Estate Other Unallocated Total Loans Individually evaluated $ 1,657 $ 10,932 $ 804 $ 66 $ — $ 13,459 Collectively evaluated 302,329 1,309,322 383,368 34,292 — 2,029,311 PCI loans 197 11,626 5,777 52 — 17,652 Total $ 304,183 $ 1,331,880 $ 389,949 $ 34,410 — $ 2,060,422 Allowance for Loan Losses Individually evaluated $ 329 $ 758 $ 66 $ 26 $ — $ 1,179 Collectively evaluated 1,731 5,500 1,677 175 (197) 8,886 Total $ 2,060 $ 6,258 $ 1,743 $ 201 $ (197) $ 10,065 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 11 – REVENUE FROM CONTRACTS WITH CUSTOMERS On January 1, 2018, the Company adopted ASU No. 2014‑09, Revenue from Contracts with Customers. ASU 2014‑09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014‑09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract; (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams or the presentation of revenue as gross versus net. No adjustment to retained earnings was required on the adoption date. Because there was no change to the timing and pattern of revenue recognition, there were no material changes to the Company’s processes and internal controls. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within non-interest income. The guidance does not apply to revenue associated with financial instruments, including loans and investment securities that are accounted for under other GAAP, which comprise a significant portion of our revenue stream. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts : The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Interchange Income : The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided by the cardholder. Gains/Losses on Sales of OREO : The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction prices is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following table presents the Company’s sources of non-interest income revenue, by operating segments, for the three months ended June 30, 2019 and 2018 and six months ended June 30, 2019 and 2018. Items outside the scope of ASC 606 are noted as such. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Commercial/ Mortgage Commercial/ Mortgage Retail Banking Holding Retail Banking Holding ($in thousands) Bank Division Company Total Bank Division Company Total Non-interest income Service charges on deposits Overdraft fees $ 1,038 $ — $ — $ 1,038 $ 2,012 $ 1 $ — $ 2,013 Other 880 1 — 881 1,738 1 — 1,739 Interchange income 2,045 — — 2,045 3,697 — — 3,697 Investment brokerage fees 24 — — 24 33 — — 33 Net gains (losses) on OREO (18) — — (18) (28) — — (28) Net gains on sale of loans (a) — — — — — — — — Net gains (losses) on sales of securities (a) (43) — — (43) (81) — — (81) Other 1,138 1,558 93 2,789 2,092 2,467 338 4,897 Total non-interest income $ 5,064 $ 1,559 $ 93 $ 6,716 $ 9,463 $ 2,469 $ 338 $ 12,270 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Commercial/ Mortgage Commercial/ Mortgage Retail Banking Holding Retail Banking Holding ($in thousands) Bank Division Company Total Bank Division Company Total Non-interest income Service charges on deposits Overdraft fees $ 800 $ 1 $ — $ 801 $ 1,427 $ 1 $ — $ 1,428 Other 541 1 — 542 941 1 — 942 Interchange income 1,500 — — 1,500 2,540 — — 2,540 Investment brokerage fees 9 — — 9 26 — — 26 Net gains (losses) on OREO (4) — — (4) 15 — — 15 Net gains on sale of loans (a) 11 — — 11 11 — — 11 Net gains (losses) on sales of securities (a) (5) — — (5) (5) — — (5) Other 650 1,211 917 2,778 1,207 2,010 917 4,134 Total non-interest income $ 3,502 $ 1,213 $ 917 $ 5,632 $ 6,162 $ 2,012 $ 917 $ 9,091 (a) Not within scope of ASC 606 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
LEASES | |
LEASES | NOTE 12 – LEASES Operating leases in which we are the lessee are recorded as operating lease ROU assets and operating lease liabilities, which are included in premises and equipment and other liabilities, respectively, on our consolidated balance sheets. We do not currently have any significant finance leases in which we are the lessee. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy and equipment expense in the consolidated statements of income and other comprehensive income. Our leases relate primarily to bank branches with remaining lease terms of generally 1 to 8 years. Certain lease arrangements contain extension options, which are not generally considered reasonably certain of exercise, and they are not included in the lease term. As of June 30, 2019, operating lease ROU assets and liabilities were $4.4 million and $4.4 million, respectively. The table below summarizes our net lease costs: Three Months Ended Six Months Ended ($in thousands) June 30, 2019 June 30, 2019 Operating lease costs $ 228 $ 350 Cash paid for amounts included in the measurement of lease liability Operating cash flows from operating leases $ 228 $ 350 The table below summarizes other information related to our operating leases: Weighted-average remaining lease term – operating leases 6.2 years Weighted-average discount rate – operating leases 3.1 % The table below summarizes the maturity of remaining lease liabilities: ($in thousands) June 30, 2019 Remaining 2019 $ 441 2020 915 2021 784 2022 737 2023 700 2024 and thereafter 1,211 Total lease payments 4,788 Less: Interest (433) Present value of lease liabilities $ 4,355 As a result of the adoption of ASC 842, The Company did not restate the prior period unaudited consolidated financial statements and all prior period amounts and disclosures are presented under ASC 840. At December 31, 2018, minimum future lease payments were as follows: ($ in thousands) December 31, 2018 2019 $ 784 2020 463 2021 347 2022 256 2023 229 2024 and thereafter 197 Total minimum lease payments $ 2,276 |
SUBSEQUENT EVENTS_OTHER
SUBSEQUENT EVENTS/OTHER | 6 Months Ended |
Jun. 30, 2019 | |
SUBSEQUENT EVENTS/OTHER | |
SUBSEQUENT EVENTS/OTHER | NOTE 13 – SUBSEQUENT EVENTS/OTHER First Florida Bancorp, Inc. On July 22, 2019, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with First Florida Bancorp, Inc., a Florida corporation (“FFB”), whereby FFB will be merged with and into the Company. Pursuant to and simultaneously with entering into the Merger Agreement, The First, and FFB’s wholly owned subsidiary bank, First Florida Bank, entered into a Plan of Bank Merger whereby First Florida Bank will be merged with and into The First immediately following the merger of FFB with and into the Company with a purchase price of approximately $85.0 million. At June 30, 2019, FFB had approximately $451.0 million in consolidated assets. The transaction is expected to close in the fourth quarter of 2019, subject to shareholder and regulatory approvals. |
RECLASSIFICATION
RECLASSIFICATION | 6 Months Ended |
Jun. 30, 2019 | |
RECLASSIFICATION | |
RECLASSIFICATION | NOTE 14 – RECLASSIFICATION Certain amounts in the 2018 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
FPB Financial Corp. [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair values of the assets acquired and liabilities assumed on March 2, 2019 ($ in thousands): Purchase price: $ Cash and stock 78,225 Total purchase price 78,225 Identifiable assets: Cash and due from banks 14,748 Investments 93,604 Loans 244,665 Bank owned life insurance 7,312 Core deposit intangible 4,793 Personal and real property 17,358 Other assets 2,135 Total assets 384,615 Liabilities and equity: Deposits 312,453 Borrowed funds 17,250 Other liabilities 6,291 Total liabilities 335,994 Net assets acquired 48,621 Goodwill resulting from acquisition $ 29,604 |
Business Combination, Separately Recognized Transactions | The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the date of acquisition and at June 30, 2019, are as follows ($ in thousands): June 30, March 2, 2019 2019 Outstanding principal balance $ 247,774 $ 231,928 Carrying amount 244,665 229,208 |
FMB Financial Corp. [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair values of the assets acquired and liabilities assumed on November 1, 2018 ($ in thousands): Purchase price: Cash and stock $ 79,547 Total purchase price 79,547 Identifiable assets: Cash and due from banks 28,556 Investments 97,331 Loans 317,909 Bank owned life insurance 13,639 Core deposit intangible 10,203 Personal and real property 15,204 Other assets 3,054 Total assets 485,896 Liabilities and equity: Deposits 431,276 Borrowed funds 5,369 Other liabilities 5,894 Total liabilities 442,539 Net assets acquired 43,357 Goodwill resulting from acquisition $ 36,190 |
Business Combination, Separately Recognized Transactions | The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the acquisition date and at June 30, 2019, are as follows ($ in thousands): June 30, November 1, 2018 2019 Outstanding principal balance $ 325,509 $ 272,947 Carrying amount 317,909 266,883 |
Sunshine Financial, Inc. [Member] | |
Business Combination, Separately Recognized Transactions | The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the date of acquisition and at June 30, 2019, are as follows ($ in thousands): April 1, 2018 June 30, 2019 Outstanding principal balance $ 173,052 $ 152,583 Carrying amount 168,561 149,665 |
Southwest Banc Shares, Inc. [Member] | |
Business Combination, Separately Recognized Transactions | The outstanding principal balance and the carrying amount of these loans included in the consolidated balance sheets as of the date of acquisition and at June 30, 2019, are as follows ($ in thousands): March 1, 2018 June 30, 2019 Outstanding principal balance $ 274,669 $ 174,041 Carrying amount 271,150 172,343 |
Business Acquisition, Pro Forma Information | The following unaudited pro-forma financial data for the six months ended June 30, 2019 and June 30, 2018 presents supplemental information as if the Southwest, Sunshine, FMB, and FPB acquisitions had occurred on January 1, 2018. The pro-forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of these dates. Pro-Forma Pro-Forma Six Months Six Months Ended Ended June 30, June 30, ($ in thousands) 2019 2018 (unaudited) (unaudited) Net interest income $ 62,961 $ 50,032 Non-interest income 11,983 11,515 Total revenue 74,944 61,547 Income before income taxes 34,354 22,224 |
EARNINGS APPLICABLE TO COMMON_2
EARNINGS APPLICABLE TO COMMON STOCKHOLDERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
EARNINGS APPLICABLE TO COMMON STOCKHOLDERS | |
Weighted-Average Number of Common Shares Outstanding | The following tables disclose the reconciliation of the numerators and denominators of the basic and diluted computations applicable to common stockholders ($in thousands, except per share amount): For the Three Months Ended June 30, 2019 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 11,983 17,182 $ 0.70 Effect of dilutive shares: Restricted stock grants 130 Diluted earnings per share $ 11,983 17,312 $ 0.69 For the Six Months Ended June 30, 2019 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 19,618 16,414 $ 1.20 Effect of dilutive shares: Restricted stock grants 130 Diluted earnings per share $ 19,618 16,544 $ 1.19 For the Three Months Ended June 30, 2018 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 5,245 13,066 $ 0.40 Effect of dilutive shares: Restricted stock grants 102 Diluted earnings per share $ 5,245 13,168 $ 0.40 For the Six Months Ended June 30, 2018 Net Income Shares Per (Numerator) (Denominator) Share Data Basic earnings per share $ 9,202 12,311 $ 0.75 Effect of dilutive shares: Restricted stock grants 102 Diluted earnings per share $ 9,202 12,413 $ 0.74 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | |
Financial Instruments with Off-Balance-Sheet Risk | The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. At June 30, 2019, and December 31, 2018, these financial instruments consisted of the following: June 30, 2019 December 31, 2018 ($ in thousands) Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 74,224 $ 8,857 $ 32,624 $ 36,780 Unused lines of credit 111,229 199,977 115,524 131,741 Commercial & similar letters of credit 2,354 8,759 2,357 8,367 |
FAIR VALUE DISCLOSURES AND RE_2
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | |
Financial Instruments with No Distinguishable Fair Value | Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: As of June 30, 2019 Fair Value Measurements Significant Other Significant Observable Unobservable Carrying Estimated Quoted Prices Inputs Inputs ($ in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 165,984 $ 165,984 $ 165,984 $ — $ — Securities available-for- sale: Obligations of U.S. Government agencies and sponsored entities 65,618 65,618 — 65,618 — Municipal securities 161,890 161,890 — 150,837 11,053 Mortgage- backed securities 360,479 360,479 — 360,479 — Corporate obligations 10,620 10,620 — 10,192 428 Securities held- to-maturity 6,396 7,627 — 7,627 — Loans, net 2,348,504 2,315,729 — — 2,315,729 Accrued interest receivable 12,828 12,828 — 3,338 9,490 Liabilities: Non-interest-bearing deposits $ 645,838 $ 645,838 $ — $ 645,838 $ — Interest-bearing deposits 2,185,362 2,175,841 — 2,175,841 — Subordinated debentures 80,600 77,950 — — 77,950 FHLB and other borrowings 71,250 71,250 — 71,250 — Accrued interest payable 1,785 1,785 — 1,785 — As of December 31, 2018 Fair Value Measurements Significant Other Significant Quoted Observable Unobservable Carrying Estimated Prices Inputs Inputs ($ in thousands) Amount Fair Value (Level 1) (Level 2) (Level 3) Financial Instruments: Assets: Cash and cash equivalents $ 159,107 $ 159,107 $ 159,107 $ — $ — Securities available-for-sale: — — — — — Obligations of U.S. Government agencies and sponsored entities 47,342 47,342 — 47,342 — Municipal securities 150,064 150,064 — 142,490 7,574 Mortgage-backed securities 287,470 287,470 — 287,470 — Corporate obligations 7,348 7,348 — 6,474 874 Securities held-to-maturity 6,000 7,028 — 7,028 — Loans, net 2,055,195 2,020,782 — — 2,020,782 Accrued interest receivable 10,778 10,778 — 2,673 8,105 Liabilities: Noninterest-bearing deposits $ 570,148 $ 570,148 $ — $ 570,148 $ — Interest-bearing deposits 1,887,311 1,855,637 — 1,855,637 — Subordinated debentures 80,521 76,986 — — 76,986 FHLB and other borrowings 85,500 85,500 — 85,500 — Accrued interest payable 1,519 1,519 — 1,519 — |
Fair Value Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below: June 30, 2019 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale Obligations of U. S. Government agencies and sponsored entities $ 65,618 $ — $ 65,618 $ — Municipal securities 161,890 — 150,837 11,053 Mortgage-backed securities 360,479 — 360,479 — Corporate obligations 10,620 — 10,192 428 Total available-for-sale $ 598,607 $ — $ 587,126 $ 11,481 December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale Obligations of U. S. Government agencies and sponsored entities $ 47,342 $ — $ 47,342 $ — Municipal securities 150,064 — 142,490 7,574 Mortgage-backed securities 287,470 — 287,470 — Corporate obligations 7,348 — 6,474 874 Total available-for-sale $ 492,224 $ — $ 483,776 $ 8,448 |
Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information | The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information. Bank-Issued Trust Preferred Securities ($ in thousands) 2019 2018 Balance, January 1 $ 874 $ 2,569 Unrealized (loss) gain included in comprehensive income (446) (1,695) Balance at June 30, 2019 and December 31, 2018 $ 428 $ 874 Municipal Securities ($ in thousands) 2019 2018 Balance, January 1 $ 7,574 $ 4,818 Unrealized (loss) gain included in comprehensive income 3,479 2,756 Balance at June 30, 2019 and December 31, 2018 $ 11,053 $ 7,574 |
Quantitative Information About Recurring Level 3 Fair Value Measurements | The following methods and assumptions were used to estimate the fair values of the Company's assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018. The following tables presents quantitative information about recurring Level 3 fair value measurements ($in thousands): Significant Fair Valuation Unobservable Range of Trust Preferred Securities Value Technique Inputs Inputs June 30, 2019 $ 428 Discounted cash flow Probability of default 3.05% - 4.59% December 31, 2018 $ 874 Discounted cash flow Probability of default 3.71% - 5.03% Significant Fair Valuation Unobservable Range of Municipal Securities Value Technique Inputs Inputs June 30, 2019 $ 11,053 Discounted cash flow Discount Rate 2.00% - 2.80% December 31, 2018 $ 7,574 Discounted cash flow Discount Rate 2.00% - 3.50% |
Fair Value Assets Measured on Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at June 30, 2019 and December 31, 2018. June 30, 2019 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 11,474 $ — $ — $ 11,474 Other real estate owned 11,205 — — 11,205 December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Markets Significant For Other Significant Identical Observable Unobservable Assets Inputs Inputs ($ in thousands) Fair Value (Level 1) (Level 2) (Level 3) Impaired loans $ 11,571 $ — $ — $ 11,571 Other real estate owned 10,869 — — 10,869 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
SECURITIES | |
Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-to-Maturity Securities | A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at June 30, 2019 and December 31, 2018, follows: June 30, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Available-for-sale securities: Obligations of U.S. Government agencies and sponsored entities $ 63,456 $ 2,163 $ 1 $ 65,618 Tax-exempt and taxable obligations of states and municipal subdivisions 158,645 3,319 74 161,890 Mortgage-backed securities 353,271 7,442 234 360,479 Corporate obligations 10,635 88 103 10,620 Total $ 586,007 $ 13,012 $ 412 $ 598,607 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-maturity securities: Taxable obligations of states and municipal subdivisions $ 6,000 $ 1,237 $ — $ 7,237 Mortgage-backed securities 396 — 6 390 Total $ 6,396 $ 1,237 $ 6 $ 7,627 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Available-for-sale securities: Obligations of U.S. Government agencies sponsored entities $ 47,212 $ 405 $ 275 $ 47,342 Tax-exempt and taxable obligations of states and municipal subdivisions 150,215 1,070 1,221 150,064 Mortgage-backed securities 289,745 1,171 3,446 287,470 Corporate obligations 7,518 15 185 7,348 Total $ 494,690 $ 2,661 $ 5,127 $ 492,224 Gross Gross Estimated Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-maturity securities: Taxable obligations of states and municipal subdivisions $ 6,000 $ 1,028 $ — $ 7,028 |
Maturities of Securities | The scheduled maturities of securities at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair ($ in thousands) Cost Value Cost Value Due less than one year $ 22,825 $ 22,882 $ — $ — Due after one year through five years 76,709 77,897 — — Due after five years through ten years 94,170 97,489 6,000 7,237 Due greater than ten years 39,032 39,860 — — Mortgage-backed securities 353,271 360,479 396 390 Total $ 586,007 $ 598,607 $ 6,396 $ 7,627 December 31, 2018 Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair ($ in thousands) Cost Value Cost Value Due less than one year $ 19,825 $ 19,794 $ — $ — Due after one year through five years 64,933 64,925 — — Due after five years through ten years 82,455 82,687 6,000 7,028 Due greater than ten years 37,732 37,348 — — Mortgage-backed securities 289,745 287,470 — — Total $ 494,690 $ 492,224 $ 6,000 $ 7,028 |
Securities Classified as Available-for-Sale with Unrealized Losses | The details concerning securities classified as available-for-sale with unrealized losses as of June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Obligations of U.S. Government agencies and sponsored entities $ 80 $ — $ 177 $ 1 $ 257 $ 1 Tax-exempt and taxable obligations of state and municipal subdivisions 3,532 1 10,980 73 14,512 74 Mortgage-backed securities 8,552 30 30,714 204 39,266 234 Corporate obligations 1,973 1 455 102 2,428 103 Total $ 14,137 $ 32 $ 42,326 $ 380 $ 56,463 $ 412 December 31, 2018 Losses < 12 Months Losses 12 Months or > Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Obligations of U.S. Government agencies and sponsored entities $ 11,034 $ 52 $ 7,838 $ 223 $ 18,872 $ 275 Tax-exempt and taxable obligations of state and municipal subdivisions 38,200 311 42,102 910 80,302 1,221 Mortgage-backed securities 93,294 843 101,005 2,603 194,299 3,446 Corporate obligations 1,962 40 4,969 145 6,931 185 Total $ 144,490 $ 1,246 $ 155,914 $ 3,881 $ 300,404 $ 5,127 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
LOANS | |
Summary of loans classified as past due in excess of 30 days or more | June 30, 2019 Past Due 90 Days Total Past Due or More Past Due, 30 to 89 and Still Non- Non-Accrual Total ($ in thousands) Days Accruing Accrual PCI and PCI Loans Real Estate-construction $ 811 $ 14 $ 211 $ 1,673 $ 2,709 $ 352,826 Residential secured loans including multi-family and farmland 3,606 911 851 8,678 14,046 713,350 Real Estate-nonfarm nonresidential 534 — 9,357 3,352 13,243 881,831 Commercial 826 64 1,333 80 2,303 342,535 Lease financing receivable — — — — — 3,616 Obligations of states and subdivisions — — — — — 17,192 Consumer installment 407 — 53 20 480 40,648 Total $ 6,184 $ 989 $ 11,805 $ 13,803 $ 32,781 $ 2,351,998 December 31, 2018 Past Due 90 Days Total Past Due or More Past Due, 30 to 89 and Still Non- Non-Accrual Total ($ in thousands) Days Accruing Accrual PCI and PCI Loans Real Estate-construction $ 818 $ 114 $ 8 $ 1,830 $ 2,770 $ 298,718 Residential secured loans including multi-family and farmland 5,528 650 1,411 7,781 15,370 617,804 Real Estate-nonfarm, nonresidential 4,319 456 9,179 3,576 17,530 776,880 Commercial 1,650 — 1,024 184 2,858 301,182 Lease financing receivable — — — — — 2,891 Obligations of states and subdivisions — — — — — 16,941 Consumer installment 507 45 46 34 632 46,006 Total $ 12,822 $ 1,265 $ 11,668 $ 13,405 $ 39,160 $ 2,060,422 The following tables set forth the amounts and past due status for the Company’s TDRs at June 30, 2019 and December 31, 2018: June 30, 2019 Past Due 90 days Current Past Due and still Non- ($ in thousands) Loans 30‑89 accruing accrual Total Commercial, financial and agriculture $ 543 $ 592 $ — $ 190 $ 1,325 Commercial real estate 5,216 59 — 5,166 10,441 Residential real estate 1,760 — 58 3,308 5,126 Consumer installment 30 — — — 30 Total $ 7,549 $ 651 $ 58 $ 8,664 $ 16,922 Allowance for loan losses $ 103 $ — $ — $ 144 $ 247 December 31, 2018 Past Due 90 days Current Past Due and still Non- ($ in thousands) Loans 30‑89 accruing accrual Total Commercial, financial and agriculture $ 13 $ 646 $ — $ 18 $ 676 Commercial real estate 4,827 — — 5,425 10,252 Residential real estate 442 86 — 2,801 3,329 Consumer installment 25 — — 13 38 Total $ 5,307 $ 732 $ — $ 8,257 $ 14,295 Allowance for loan losses $ 80 $ 13 $ — $ 110 $ 203 |
Schedule of payments receivable, cash flow, PCI loans | ($ in thousands) Southwest Sunshine FMB FPB Total Contractually required payments $ 925 $ 4,194 $ 9,939 $ 4,715 $ 19,773 Cash flows expected to be collected 706 3,894 8,604 4,295 17,499 Fair value of loans acquired 657 3,837 7,978 3,916 16,388 |
Schedule of certain loans acquired in transfer carrying amount and accretable yield for acquired impaired loans | June 30, 2019 June 30, 2018 Accretable Accretable ($ in thousands) Yield Yield Balance at beginning of period January 1 $ 3,835 $ 836 Reclassification from prior years — 859 Addition 307 762 Accretion (476) (200) Transfer from non-accretable 48 129 Charge-off — (10) Balance at end of period $ 3,714 $ 2,376 |
Schedule of details of impaired loans | The following tables provide additional detail of impaired loans broken out according to class as of June 30, 2019 and December 31, 2018. The recorded investment included in the following tables represents customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at June 30, 2019 are on non-accrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90‑days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs. June 30, 2019 Average Interest Recorded Income Recorded Unpaid Related Investment Recognized ($ in thousands) Investment Balance Allowance YTD YTD Impaired loans with no related allowance: Commercial, financial and agriculture $ 671 $ 671 $ — $ 865 $ 11 Commercial real estate 3,421 3,896 — 9,100 2 Consumer real estate 545 643 — 4,076 1 Consumer installment 4 3 — 27 — Total $ 4,641 $ 5,213 $ — $ 14,068 $ 14 Impaired loans with a related allowance: Commercial, financial and agriculture $ 1,722 $ 1,723 $ 427 $ 2,506 $ 18 Commercial real estate 7,619 7,914 1,839 11,432 47 Consumer real estate 478 480 69 719 6 Consumer installment 61 61 37 99 1 Total $ 9,880 $ 10,178 $ 2,372 $ 14,756 $ 72 Total Impaired Loans: Commercial, financial and agriculture $ 2,393 $ 2,394 $ 427 $ 3,371 $ 29 Commercial real estate 11,040 11,810 1,839 20,532 49 Consumer real estate 1,023 1,123 69 4,795 7 Consumer installment 65 64 37 126 1 Total Impaired Loans $ 14,521 $ 15,391 $ 2,372 $ 28,824 $ 86 As of June 30, 2019, the Company had $1.8 million of foreclosed residential real estate property obtained by physical possession and $1.2 thousand of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process according to local jurisdictions. December 31, 2018 Average Interest Recorded Income Recorded Unpaid Related Investment Recognized ($ in thousands) Investment Balance Allowance YTD YTD Impaired loans with no related allowance: Commercial, financial and agriculture $ 709 $ 709 $ — $ 379 $ 27 Commercial real estate 6,441 8,170 — 7,685 427 Consumer real estate 445 760 — 4,522 69 Consumer installment — — — 82 3 Total $ 7,595 $ 9,639 $ — $ 12,668 $ 526 Impaired loans with a related allowance: Commercial, financial and agriculture $ 960 $ 960 $ 329 $ 968 $ 3 Commercial real estate 4,512 4,512 758 2,868 176 Consumer real estate 366 366 66 555 16 Consumer installment 26 26 26 24 — Total $ 5,864 $ 5,864 $ 1,179 $ 4,415 $ 195 Total Impaired Loans: Commercial, financial and agriculture $ 1,669 $ 1,669 $ 329 $ 1,347 $ 30 Commercial real estate 10,953 12,682 758 10,553 603 Consumer real estate 811 1,126 66 5,077 85 Consumer installment 26 26 26 106 3 Total Impaired Loans $ 13,459 $ 15,503 $ 1,179 $ 17,083 $ 721 |
Schedule of risk category of loans by class of loans | As of June 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk categories of loans by class of loans (excluding mortgage loans held for sale) were as follows: June 30, 2019 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Total Pass $ 342,390 $ 1,476,941 $ 439,998 $ 34,726 $ 2,294,055 Special Mention 1,117 7,527 1,951 26 10,621 Substandard 2,829 32,834 12,188 407 48,258 Doubtful 22 82 — — 104 Subtotal 346,358 1,517,384 454,137 35,159 2,353,038 Less: Unearned discount — 1,040 — — 1,040 Loans, net of unearned discount $ 346,358 $ 1,516,344 $ 454,137 $ 35,159 $ 2,351,998 December 31, 2018 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Total Pass $ 300,685 $ 1,286,151 $ 377,028 $ 34,127 $ 1,997,991 Special Mention 842 12,401 1,962 13 15,218 Substandard 2,640 33,856 10,959 270 47,725 Doubtful 16 85 — — 101 Subtotal 304,183 1,332,493 389,949 34,410 2,061,035 Less: Unearned discount — 613 — — 613 Loans, net of unearned discount $ 304,183 $ 1,331,880 $ 389,949 $ 34,410 $ 2,060,422 |
Summary of activity in the allowance for loan losses | Six months ended June 30, 2019 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Unallocated Total Allowance for loan losses: Beginning balance $ 2,060 $ 6,258 $ 1,743 $ 201 $ (197) $ 10,065 Provision for loan losses 351 1,666 (313) (36) 245 1,913 Charge-offs 6 66 42 67 — 181 Recoveries 27 14 101 152 — 294 Net Charge-offs (recoveries) (21) 52 (59) (85) — (113) Ending Balance $ 2,432 $ 7,872 $ 1,489 $ 250 $ 48 $ 12,091 Six months ended June 30, 2018 Commercial, Commercial Consumer Installment Financial and Real Real and ($ in thousands) Agriculture Estate Estate Other Unallocated Total Allowance for loan losses: Beginning balance $ 1,608 $ 4,644 $ 1,499 $ 173 $ 364 $ 8,288 Provision for loan losses 390 476 69 (20) 219 1,134 Charge-offs 5 10 7 32 — 54 Recoveries 18 26 37 63 — 144 Net Charge-offs (recoveries) (13) (16) (30) (31) — (90) Ending Balance $ 2,011 $ 5,136 $ 1,598 $ 184 $ 583 $ 9,512 |
Schedule of loans and allowance for loan losses | The following tables provide the ending balances in the Company’s loans (excluding mortgage loans held for sale) and allowance for loan losses, broken down by portfolio segment as of June 30, 2019 and December 31, 2018. The tables also provide additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation. The impairment evaluation corresponds to the Company’s systematic methodology for estimating its Allowance for Loan Losses. See Item 2. – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Allowance for Loan and Lease Losses” for a description of our methodology. June 30, 2019 Commercial Financial Installment and Commercial Consumer and ($ in thousands) Agriculture Real Estate Real Estate Other Unallocated Total Loans Individually evaluated $ 2,393 $ 11,040 $ 1,023 $ 65 $ — $ 14,521 Collectively evaluated 359,396 1,539,832 377,635 40,708 — 2,317,571 PCI loans 183 12,113 7,560 50 — 19,906 Total $ 361,972 $ 1,562,985 $ 386,218 $ 40,823 — $ 2,351,998 Allowance for Loan Losses Individually evaluated $ 427 $ 1,839 $ 69 $ 37 $ — $ 2,372 Collectively evaluated 2,005 6,033 1,420 213 48 9,719 Total $ 2,432 $ 7,872 $ 1,489 $ 250 $ 48 $ 12,091 December 31, 2018 Commercial Financial Installment and Commercial Consumer and ($ in thousands) Agriculture Real Estate Real Estate Other Unallocated Total Loans Individually evaluated $ 1,657 $ 10,932 $ 804 $ 66 $ — $ 13,459 Collectively evaluated 302,329 1,309,322 383,368 34,292 — 2,029,311 PCI loans 197 11,626 5,777 52 — 17,652 Total $ 304,183 $ 1,331,880 $ 389,949 $ 34,410 — $ 2,060,422 Allowance for Loan Losses Individually evaluated $ 329 $ 758 $ 66 $ 26 $ — $ 1,179 Collectively evaluated 1,731 5,500 1,677 175 (197) 8,886 Total $ 2,060 $ 6,258 $ 1,743 $ 201 $ (197) $ 10,065 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of non-interest income revenue by operating segments | Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Commercial/ Mortgage Commercial/ Mortgage Retail Banking Holding Retail Banking Holding ($in thousands) Bank Division Company Total Bank Division Company Total Non-interest income Service charges on deposits Overdraft fees $ 1,038 $ — $ — $ 1,038 $ 2,012 $ 1 $ — $ 2,013 Other 880 1 — 881 1,738 1 — 1,739 Interchange income 2,045 — — 2,045 3,697 — — 3,697 Investment brokerage fees 24 — — 24 33 — — 33 Net gains (losses) on OREO (18) — — (18) (28) — — (28) Net gains on sale of loans (a) — — — — — — — — Net gains (losses) on sales of securities (a) (43) — — (43) (81) — — (81) Other 1,138 1,558 93 2,789 2,092 2,467 338 4,897 Total non-interest income $ 5,064 $ 1,559 $ 93 $ 6,716 $ 9,463 $ 2,469 $ 338 $ 12,270 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Commercial/ Mortgage Commercial/ Mortgage Retail Banking Holding Retail Banking Holding ($in thousands) Bank Division Company Total Bank Division Company Total Non-interest income Service charges on deposits Overdraft fees $ 800 $ 1 $ — $ 801 $ 1,427 $ 1 $ — $ 1,428 Other 541 1 — 542 941 1 — 942 Interchange income 1,500 — — 1,500 2,540 — — 2,540 Investment brokerage fees 9 — — 9 26 — — 26 Net gains (losses) on OREO (4) — — (4) 15 — — 15 Net gains on sale of loans (a) 11 — — 11 11 — — 11 Net gains (losses) on sales of securities (a) (5) — — (5) (5) — — (5) Other 650 1,211 917 2,778 1,207 2,010 917 4,134 Total non-interest income $ 3,502 $ 1,213 $ 917 $ 5,632 $ 6,162 $ 2,012 $ 917 $ 9,091 (a) Not within scope of ASC 606 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
LEASES | |
Schedule of lease costs | Three Months Ended Six Months Ended ($in thousands) June 30, 2019 June 30, 2019 Operating lease costs $ 228 $ 350 Cash paid for amounts included in the measurement of lease liability Operating cash flows from operating leases $ 228 $ 350 |
Schedule of information related to leases | Weighted-average remaining lease term – operating leases 6.2 years Weighted-average discount rate – operating leases 3.1 % |
Schedule of maturity of remaining of lease liabilities | ($in thousands) June 30, 2019 Remaining 2019 $ 441 2020 915 2021 784 2022 737 2023 700 2024 and thereafter 1,211 Total lease payments 4,788 Less: Interest (433) Present value of lease liabilities $ 4,355 |
Schedule of minimum future lease payments | ($ in thousands) December 31, 2018 2019 $ 784 2020 463 2021 347 2022 256 2023 229 2024 and thereafter 197 Total minimum lease payments $ 2,276 |
SUMMARY OF ORGANIZATION - Addit
SUMMARY OF ORGANIZATION - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | May 24, 2019 | Feb. 26, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Disclosure Summary Of Organization Additional Information [Abstract] | ||||||||||
Assets | $ 3,472,584 | $ 3,472,584 | $ 3,003,986 | |||||||
Loans, including Loans held for sale | 2,349,000 | 2,349,000 | ||||||||
Deposits | 2,831,200 | 2,831,200 | 2,457,459 | |||||||
Stockholders' equity | 466,281 | $ 285,826 | 466,281 | $ 285,826 | $ 454,347 | $ 363,254 | $ 258,539 | $ 222,468 | ||
Net income | $ 11,983 | $ 5,245 | 19,618 | $ 9,202 | ||||||
Dividends on common stock, per share | $ 0.08 | $ 0.07 | ||||||||
Noncash Merger Related Costs | $ 2,500 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Leases | ||
Operating lease ROU assets | $ 4,400 | $ 1,800 |
Operating lease liabilities | $ 4,355 | $ 1,800 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) - USD ($) | Mar. 02, 2019 | Nov. 30, 2018 | Apr. 30, 2018 | Mar. 01, 2018 | Jun. 30, 2019 | Sep. 30, 2018 |
FPB Financial Corp. [Member] | ||||||
BUSINESS COMBINATIONS | ||||||
Payments to Acquire Businesses, Gross | $ 5,000 | |||||
Goodwill, Acquired During Period | 29,600,000 | |||||
Business Acquisition Purchase Price Allocation Loans Receivable | 247,800,000 | |||||
Business Combination Recognized Assets Acquired and Liabilities Assumed, Discount on Loans Acquired | 3,100,000 | |||||
Business Combination, Acquisition Related Costs | 4,800,000 | $ 2,100,000 | ||||
Business Combination, Consideration Transferred | 78,225,000 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 2,377,501 | |||||
FPB Financial Corp. [Member] | Core Deposits [Member] | ||||||
BUSINESS COMBINATIONS | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||
FMB Financial Corp. [Member] | ||||||
BUSINESS COMBINATIONS | ||||||
Payments to Acquire Businesses, Gross | $ 16,000,000 | |||||
Goodwill, Acquired During Period | 36,200,000 | |||||
Business Acquisition Purchase Price Allocation Loans Receivable | 325,500,000 | |||||
Business Combination Recognized Assets Acquired and Liabilities Assumed, Discount on Loans Acquired | 7,600,000 | |||||
Business Combination, Acquisition Related Costs | 10,200,000 | 556,000,000 | ||||
Business Combination, Consideration Transferred | 79,500,000 | $ 79,547,000 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,763,042 | |||||
FMB Financial Corp. [Member] | Core Deposits [Member] | ||||||
BUSINESS COMBINATIONS | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||
Sunshine Financial, Inc. [Member] | ||||||
BUSINESS COMBINATIONS | ||||||
Payments to Acquire Businesses, Gross | $ 7,000 | |||||
Goodwill, Acquired During Period | 9,500,000 | |||||
Business Acquisition Purchase Price Allocation Loans Receivable | 173,100,000 | |||||
Business Combination Recognized Assets Acquired and Liabilities Assumed, Discount on Loans Acquired | 4,500,000 | |||||
Business Combination, Acquisition Related Costs | 4,100,000 | 250,000 | ||||
Business Combination, Consideration Transferred | 30,500,000 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 726,461 | |||||
Sunshine Financial, Inc. [Member] | Core Deposits [Member] | ||||||
BUSINESS COMBINATIONS | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||
Southwest Banc Shares, Inc. [Member] | ||||||
BUSINESS COMBINATIONS | ||||||
Payments to Acquire Businesses, Gross | $ 24,000,000 | |||||
Goodwill, Acquired During Period | $ 23,900,000 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||
Business Acquisition Purchase Price Allocation Loans Receivable | 274,700,000 | |||||
Business Combination Recognized Assets Acquired and Liabilities Assumed, Discount on Loans Acquired | 3,500,000 | |||||
Business Combination, Acquisition Related Costs | $ 5,800,000 | $ 368,000,000 | ||||
Business Combination, Consideration Transferred | 60,000,000 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,134,010 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Acquired Identifiable Assets and Liabilities for FPB financial corp (Details) - USD ($) $ in Thousands | Mar. 02, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Liabilities and equity: | |||
Goodwill resulting from acquisition | $ 119,202 | $ 89,750 | |
FPB Financial Corp. [Member] | |||
Purchase price: | |||
Cash and stock | $ 78,225 | ||
Total purchase price | 78,225 | ||
Identifiable assets: | |||
Cash and due from banks | 14,748 | ||
Investments | 93,604 | ||
Loans | 244,665 | ||
Bank owned life insurance | 7,312 | ||
Core deposit intangible | 4,793 | ||
Personal and real property | 17,358 | ||
Other assets | 2,135 | ||
Total assets | 384,615 | ||
Liabilities and equity: | |||
Deposits | 312,453 | ||
Borrowed funds | 17,250 | ||
Other liabilities | 6,291 | ||
Total liabilities | 335,994 | ||
Net assets acquired | 48,621 | ||
Goodwill resulting from acquisition | $ 29,604 |
BUSINESS COMBINATIONS - Outstan
BUSINESS COMBINATIONS - Outstanding Principal Balance and Carrying Amount of Loans for FPB finacial corp. (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 02, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Outstanding principal balance | $ 19,900 | $ 17,700 | |
FPB Financial Corp. [Member] | |||
Business Acquisition [Line Items] | |||
Outstanding principal balance | 231,928 | $ 247,774 | |
Carrying amount | $ 229,208 | $ 244,665 |
BUSINESS COMBINATIONS - Summa_2
BUSINESS COMBINATIONS - Summary of Acquired Identifiable Assets and Liabilities for FMB financial corp (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Liabilities and equity: | ||||
Goodwill resulting from acquisition | $ 119,202 | $ 89,750 | ||
FMB Financial Corp. [Member] | ||||
Purchase price: | ||||
Cash and stock | $ 79,547 | |||
Total purchase price | $ 79,500 | 79,547 | ||
Identifiable assets: | ||||
Cash and due from banks | 28,556 | |||
Investments | 97,331 | |||
Loans | 317,909 | |||
Bank owned life insurance | 13,639 | |||
Core deposit intangible | 10,203 | |||
Personal and real property | 15,204 | |||
Other assets | 3,054 | |||
Total assets | 485,896 | |||
Liabilities and equity: | ||||
Deposits | 431,276 | |||
Borrowed funds | 5,369 | |||
Other liabilities | 5,894 | |||
Total liabilities | 442,539 | |||
Net assets acquired | 43,357 | |||
Goodwill resulting from acquisition | $ 36,190 |
BUSINESS COMBINATIONS - Outst_2
BUSINESS COMBINATIONS - Outstanding Principal Balance and Carrying Amount of Loans for FMB financial corp. (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Nov. 30, 2018 |
Business Acquisition [Line Items] | |||
Outstanding principal balance | $ 19,900 | $ 17,700 | |
FMB Financial Corp. [Member] | |||
Business Acquisition [Line Items] | |||
Outstanding principal balance | 272,947 | $ 325,509 | |
Carrying amount | $ 266,883 | $ 317,909 |
BUSINESS COMBINATIONS - Outst_3
BUSINESS COMBINATIONS - Outstanding Principal Balance and Carrying Amount of Loans for Sunshine Financial, Inc. (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Apr. 01, 2018 |
Outstanding principal balance | $ 19,900 | $ 17,700 | |
Sunshine Financial, Inc. [Member] | |||
Outstanding principal balance | 152,583 | $ 173,052 | |
Carrying amount | $ 149,665 | $ 168,561 |
BUSINESS COMBINATIONS - Outst_4
BUSINESS COMBINATIONS - Outstanding Principal Balance and Carrying Amount of Loans for Southwest Banc Shares, Inc. (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 01, 2019 | Dec. 31, 2018 |
Outstanding principal balance | $ 19,900 | $ 17,700 | |
Southwest Banc Shares, Inc. [Member] | |||
Outstanding principal balance | 174,041 | $ 274,669 | |
Carrying amount | $ 172,343 | $ 271,150 |
BUSINESS COMBINATIONS - Unaudit
BUSINESS COMBINATIONS - Unaudited Supplemental Pro Forma Information for Southwest Banc Shares, Inc. (Details) - Southwest Banc Shares, Inc. [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 74,944 | $ 61,547 |
Income before income taxes | 34,354 | 22,224 |
Net interest income [Member] | ||
Business Acquisition [Line Items] | ||
Total revenue | 62,961 | 50,032 |
Non-interest income [Member] | ||
Business Acquisition [Line Items] | ||
Total revenue | $ 11,983 | $ 11,515 |
EARNINGS APPLICABLE TO COMMON_3
EARNINGS APPLICABLE TO COMMON STOCKHOLDERS - Additional Information (Details) - shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Disclosure Earnings Applicable To Common Stockholders Additional Information [Abstract] | ||||
Shares of restricted stock granted | 750 | 66,132 | 0 | 51,851 |
EARNINGS APPLICABLE TO COMMON_4
EARNINGS APPLICABLE TO COMMON STOCKHOLDERS - Reconciliation of Numerators and Denominators of Basic and Diluted Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Earnings Applicable To Common Stockholders [Abstract] | ||||
Net income available to common stock holders, basic earnings per share | $ 11,983 | $ 5,245 | $ 19,618 | $ 9,202 |
Net income available to common stock holders, diluted earnings per share | $ 11,983 | $ 5,245 | $ 19,618 | $ 9,202 |
Effect of dilutive shares: | ||||
Weighted average number of shares outstanding, basic earnings per share | 17,182 | 13,066 | 16,414 | 12,311 |
Restricted stock grants | 130 | 102 | 130 | 102 |
Weighted average number of shares outstanding, diluted earnings per share | 17,312 | 13,168 | 16,544 | 12,413 |
Basic earnings per share | $ 0.70 | $ 0.40 | $ 1.20 | $ 0.75 |
Diluted earnings per share | $ 0.69 | $ 0.40 | $ 1.19 | $ 0.74 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK - Additional Information (Details) - OFF BALANCESHEET RISK [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Maximum [Member] | |
Concentration Risk [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 19.70% |
Debt Instrument, Term | 30 years |
Minimum [Member] | |
Concentration Risk [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 0.50% |
Debt Instrument, Term | 1 year |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to make loans | $ 74,224 | $ 32,624 |
Unused lines of credit | 111,229 | 115,524 |
Commercial & similar letters of credit | 2,354 | 2,357 |
Variable Rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to make loans | 8,857 | 36,780 |
Unused lines of credit | 199,977 | 131,741 |
Commercial & similar letters of credit | $ 8,759 | $ 8,367 |
FAIR VALUE DISCLOSURES AND RE_3
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Additional Information (Details) $ in Millions | Jun. 30, 2019USD ($) |
Measurement Input, Discount Rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans Held-for-sale, Measurement Input | 0.10 |
Other Real Estate Owned, Measurement Input | 0.10 |
Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value on a non recurring basis | $ 11.2 |
FAIR VALUE DISCLOSURES AND RE_4
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Values of off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 165,984 | $ 159,107 | $ 120,425 | $ 91,921 |
Obligations of U.S. Government Agencies | 65,618 | 47,342 | ||
Municipal securities | 161,890 | 150,064 | ||
Mortgage-backed securities | 360,479 | 287,470 | ||
Corporate obligations | 10,620 | 7,348 | ||
Securities available-for- sale | 598,607 | 492,224 | ||
Securities held- to-maturity | 6,396 | 6,000 | ||
Other securities | 17,819 | 16,704 | ||
Loans, net | 2,348,504 | 2,055,195 | ||
Accrued interest receivable | 12,828 | 10,778 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 645,838 | 570,148 | ||
Interest-bearing deposits | 2,185,362 | 1,887,311 | ||
Subordinated debentures | 80,600 | 80,521 | ||
FHLB and other borrowings | 71,250 | 85,500 | ||
Accrued interest payable | 1,785 | 1,519 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Assets: | ||||
Cash and cash equivalents | 165,984 | 159,107 | ||
Significant Other Observable Inputs (Level 2) | ||||
Assets: | ||||
Obligations of U.S. Government Agencies | 65,618 | 47,342 | ||
Municipal securities | 150,837 | 142,490 | ||
Mortgage-backed securities | 360,479 | 287,470 | ||
Corporate obligations | 10,192 | 6,474 | ||
Securities available-for- sale | 587,126 | 483,776 | ||
Securities held- to-maturity | 7,627 | 7,028 | ||
Accrued interest receivable | 3,338 | 2,673 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 645,838 | 570,148 | ||
Interest-bearing deposits | 2,175,841 | 1,855,637 | ||
FHLB and other borrowings | 71,250 | 85,500 | ||
Accrued interest payable | 1,785 | 1,519 | ||
Significant Unobservable Inputs (Level 3) | ||||
Assets: | ||||
Municipal securities | 11,053 | 7,574 | ||
Corporate obligations | 428 | 874 | ||
Securities available-for- sale | 11,481 | 8,448 | ||
Loans, net | 2,315,729 | 2,020,782 | ||
Accrued interest receivable | 9,490 | 8,105 | ||
Liabilities: | ||||
Subordinated debentures | 77,950 | 76,986 | ||
Estimated Fair Value | ||||
Assets: | ||||
Cash and cash equivalents | 165,984 | 159,107 | ||
Obligations of U.S. Government Agencies | 65,618 | 47,342 | ||
Municipal securities | 161,890 | 150,064 | ||
Mortgage-backed securities | 360,479 | 287,470 | ||
Corporate obligations | 10,620 | 7,348 | ||
Securities held- to-maturity | 7,627 | 7,028 | ||
Loans, net | 2,315,729 | 2,020,782 | ||
Accrued interest receivable | 12,828 | 10,778 | ||
Liabilities: | ||||
Noninterest- bearing deposits | 645,838 | 570,148 | ||
Interest-bearing deposits | 2,175,841 | 1,855,637 | ||
Subordinated debentures | 77,950 | 76,986 | ||
FHLB and other borrowings | 71,250 | 85,500 | ||
Accrued interest payable | $ 1,785 | $ 1,519 |
FAIR VALUE DISCLOSURES AND RE_5
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 598,607 | $ 492,224 |
Obligations of U. S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 65,618 | 47,342 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 161,890 | 150,064 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 360,479 | 287,470 |
Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 10,620 | 7,348 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 587,126 | 483,776 |
Significant Other Observable Inputs (Level 2) | Obligations of U. S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 65,618 | 47,342 |
Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 150,837 | 142,490 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 360,479 | 287,470 |
Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 10,192 | 6,474 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 11,481 | 8,448 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | 11,053 | 7,574 |
Significant Unobservable Inputs (Level 3) | Corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available-for-sale, at fair value | $ 428 | $ 874 |
FAIR VALUE DISCLOSURES AND RE_6
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Bank-Issued Trust Preferred Securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | $ 874 | $ 2,569 |
Unrealized (loss) gain included in comprehensive income | (446) | (1,695) |
Balance at June 30, 2019 and December 31, 2018 | 428 | 874 |
Municipal securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | 7,574 | 4,818 |
Unrealized (loss) gain included in comprehensive income | 3,479 | 2,756 |
Balance at June 30, 2019 and December 31, 2018 | $ 11,053 | $ 7,574 |
FAIR VALUE DISCLOSURES AND RE_7
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Quantitative Information About Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Fair Value | $ 11,053 | $ 7,574 |
Valuation Technique | Discounted cash flow | Discounted cash flow |
Significant Unobservable Inputs | Discount Rate | Discount Rate |
Range of Inputs, Minimum | 2.00% | 2.00% |
Range of Inputs, Maximum | 2.80% | 3.50% |
Valuation Technique, Discounted Cash Flow [Member] | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Valuation Technique | Discounted cash flow | Discounted cash flow |
Range of Inputs, Minimum | 3.05% | 3.71% |
Range of Inputs, Maximum | 4.59% | 5.03% |
Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow [Member] | ||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | ||
Fair Value | $ 428 | $ 874 |
Significant Unobservable Inputs | Probability of default | Probability of default |
FAIR VALUE DISCLOSURES AND RE_8
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 11,474 | $ 11,571 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 11,205 | 10,869 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 11,474 | 11,571 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 11,205 | $ 10,869 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)security | Dec. 31, 2018security | |
SECURITIES | ||
Number of Security Portfolio | security | 87 | 427 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ | $ 348 |
SECURITIES - Summary of Amortiz
SECURITIES - Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-To-Maturity Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale, Amortized Cost | $ 586,007 | $ 494,690 |
Available-for-sale Securities, Gross Unrealized Gains | 13,012 | 2,661 |
Available-for-sale Securities, Gross Unrealized Losses | 412 | 5,127 |
Available-for-sale securities, Estimated Fair Value | 598,607 | 492,224 |
Held-to-Maturity, Amortized Cost | 6,396 | |
Held-to-maturity Securities, Gross Unrealized Gains | 1,237 | |
Held-to-maturity Securities, Gross Unrealized Losses | 6 | |
Held-to-Maturity, Estimated Fair Value | 7,627 | 7,028 |
Obligations of U.S. Government agencies | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale, Amortized Cost | 63,456 | 47,212 |
Available-for-sale Securities, Gross Unrealized Gains | 2,163 | 405 |
Available-for-sale Securities, Gross Unrealized Losses | 1 | 275 |
Available-for-sale securities, Estimated Fair Value | 65,618 | 47,342 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale, Amortized Cost | 158,645 | 150,215 |
Available-for-sale Securities, Gross Unrealized Gains | 3,319 | 1,070 |
Available-for-sale Securities, Gross Unrealized Losses | 74 | 1,221 |
Available-for-sale securities, Estimated Fair Value | 161,890 | 150,064 |
Held-to-Maturity, Amortized Cost | 6,000 | 6,000 |
Held-to-maturity Securities, Gross Unrealized Gains | 1,237 | 1,028 |
Held-to-Maturity, Estimated Fair Value | 7,237 | 7,028 |
Mortgage-backed securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale, Amortized Cost | 353,271 | 289,745 |
Available-for-sale Securities, Gross Unrealized Gains | 7,442 | 1,171 |
Available-for-sale Securities, Gross Unrealized Losses | 234 | 3,446 |
Available-for-sale securities, Estimated Fair Value | 360,479 | 287,470 |
Held-to-Maturity, Amortized Cost | 396 | |
Held-to-maturity Securities, Gross Unrealized Losses | 6 | |
Held-to-Maturity, Estimated Fair Value | 390 | |
Corporate obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-Sale, Amortized Cost | 10,635 | 7,518 |
Available-for-sale Securities, Gross Unrealized Gains | 88 | 15 |
Available-for-sale Securities, Gross Unrealized Losses | 103 | 185 |
Available-for-sale securities, Estimated Fair Value | $ 10,620 | $ 7,348 |
SECURITIES - Maturities of Secu
SECURITIES - Maturities of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-Sale, Amortized Cost | ||
Due less than one year | $ 22,825 | $ 19,825 |
Due after one year through five years | 76,709 | 64,933 |
Due after five years through ten years | 94,170 | 82,455 |
Due greater than ten years | 39,032 | 37,732 |
Mortgage-backed securities | 353,271 | 289,745 |
Total | 586,007 | 494,690 |
Available-for-sale, Estimated Fair Value | ||
Due less than one year | 22,882 | 19,794 |
Due after one year through five years | 77,897 | 64,925 |
Due after five years through ten years | 97,489 | 82,687 |
Due greater than ten years | 39,860 | 37,348 |
Mortgage-backed securities | 360,479 | 287,470 |
Total | 598,607 | 492,224 |
Held-to-maturity, Amortized Cost | ||
Due after five years through ten years | 6,000 | 6,000 |
Mortgage-backed securities | 396 | |
Total | 6,396 | 6,000 |
Held-to-maturity, Estimated Fair Value | ||
Due after five years through ten years | 7,237 | 7,028 |
Mortgage-backed securities | 390 | |
Total | $ 7,627 | $ 7,028 |
SECURITIES - Securities Classif
SECURITIES - Securities Classified as Available-for-Sale with Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Losses less than 12 Months | $ 14,137 | $ 144,490 |
Fair Value, Losses 12 Months or More | 42,326 | 155,914 |
Fair Value, Total | 56,463 | 300,404 |
Gross Unrealized Losses, Losses less than 12 Months | 32 | 1,246 |
Gross Unrealized Losses, Losses 12 Months or More | 380 | 3,881 |
Gross Unrealized Losses, Total | 412 | 5,127 |
Obligations of U.S. Government agencies | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Losses less than 12 Months | 80 | 11,034 |
Fair Value, Losses 12 Months or More | 177 | 7,838 |
Fair Value, Total | 257 | 18,872 |
Gross Unrealized Losses, Losses less than 12 Months | 52 | |
Gross Unrealized Losses, Losses 12 Months or More | 1 | 223 |
Gross Unrealized Losses, Total | 1 | 275 |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Losses less than 12 Months | 3,532 | 38,200 |
Fair Value, Losses 12 Months or More | 10,980 | 42,102 |
Fair Value, Total | 14,512 | 80,302 |
Gross Unrealized Losses, Losses less than 12 Months | 1 | 311 |
Gross Unrealized Losses, Losses 12 Months or More | 73 | 910 |
Gross Unrealized Losses, Total | 74 | 1,221 |
Mortgage-backed securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Losses less than 12 Months | 8,552 | 93,294 |
Fair Value, Losses 12 Months or More | 30,714 | 101,005 |
Fair Value, Total | 39,266 | 194,299 |
Gross Unrealized Losses, Losses less than 12 Months | 30 | 843 |
Gross Unrealized Losses, Losses 12 Months or More | 204 | 2,603 |
Gross Unrealized Losses, Total | 234 | 3,446 |
Corporate obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Fair value, Losses less than 12 Months | 1,973 | 1,962 |
Fair Value, Losses 12 Months or More | 455 | 4,969 |
Fair Value, Total | 2,428 | 6,931 |
Gross Unrealized Losses, Losses less than 12 Months | 1 | 40 |
Gross Unrealized Losses, Losses 12 Months or More | 102 | 145 |
Gross Unrealized Losses, Total | $ 103 | $ 185 |
LOANS - Additional Information
LOANS - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2018USD ($)loan | Sep. 30, 2018loan | Dec. 31, 2018USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | $ 19,900,000 | $ 19,900,000 | $ 17,700,000 | |||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield | 3,700,000 | 3,700,000 | 3,800,000 | |||
Foreclosed Real Estate Expense | 1,800,000 | |||||
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 1,200,000 | 1,200,000 | ||||
Impaired Financing Receivable Interest Income | 37,000 | 37,000 | ||||
Impaired Financing Receivable, Interest Income, Cash Basis Method | 159,000 | 159,000 | ||||
Impaired Financing Receivable, Recorded Investment | $ 14,521,000 | $ 14,521,000 | 13,459,000 | |||
Number of troubled debt restructuring modifications | loan | 1 | 0 | 4 | 0 | ||
Financing Receivable, Modifications, Reserve | $ 247,000 | $ 247,000 | ||||
Financing Receivable, Modifications, Recorded Investment | 16,900,000 | 16,900,000 | 14,300,000 | |||
Increase in Financing Receivable Modifications | 2,600,000 | |||||
Additional amount committed on TDR loans | $ 0 | 0 | ||||
Trouble debt restructuring [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 86,000 | 4,700,000 | $ 381,000 | |||
Loans that were modified as a TDR which had a payment default | loan | 0 | 1 | 3 | 12 | ||
Lease financing receivable | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Interest income not recorded due to loans in non-accrual status | $ 141 | 550 | ||||
Non- Accrual | $ 0 | $ 0 | $ 0 |
LOANS - Summary of Loans Classi
LOANS - Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | $ 6,184 | $ 12,822 |
Past Due 90 Days Or More and Still Accruing | 989 | 1,265 |
Non- Accrual | 11,805 | 11,668 |
PCI | 13,803 | 13,405 |
Total Past Due and Non- Accrual and PCI | 32,781 | 39,160 |
Total Loans | 2,351,998 | 2,060,422 |
Residential Secured Loans Including Multifamily And Farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 3,606 | 5,528 |
Past Due 90 Days Or More and Still Accruing | 911 | 650 |
Non- Accrual | 851 | 1,411 |
PCI | 8,678 | 7,781 |
Total Past Due and Non- Accrual and PCI | 14,046 | 15,370 |
Total Loans | 713,350 | 617,804 |
Lease financing receivable | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 3,616 | 2,891 |
Obligations of states and subdivisions | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 17,192 | 16,941 |
Real Estate-non farm non residential | Real Estate-non farm non residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 534 | 4,319 |
Past Due 90 Days Or More and Still Accruing | 456 | |
Non- Accrual | 9,357 | 9,179 |
PCI | 3,352 | 3,576 |
Total Past Due and Non- Accrual and PCI | 13,243 | 17,530 |
Total Loans | 881,831 | 776,880 |
Real Estate-construction | Real Estate-construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 811 | 818 |
Past Due 90 Days Or More and Still Accruing | 14 | 114 |
Non- Accrual | 211 | 8 |
PCI | 1,673 | 1,830 |
Total Past Due and Non- Accrual and PCI | 2,709 | 2,770 |
Total Loans | 352,826 | 298,718 |
Commercial | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 826 | 1,650 |
Past Due 90 Days Or More and Still Accruing | 64 | |
Non- Accrual | 1,333 | 1,024 |
PCI | 80 | 184 |
Total Past Due and Non- Accrual and PCI | 2,303 | 2,858 |
Total Loans | 342,535 | 301,182 |
Consumer | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 407 | 507 |
Past Due 90 Days Or More and Still Accruing | 45 | |
Non- Accrual | 53 | 46 |
PCI | 20 | 34 |
Total Past Due and Non- Accrual and PCI | 480 | 632 |
Total Loans | $ 40,648 | $ 46,006 |
LOANS - Information Regarding C
LOANS - Information Regarding Contractually Payments Receivable, Cash Flows (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items] | |
Contractually required payments | $ 19,773 |
Cash flows expected to be collected | 17,499 |
Fair value of loans acquired | 16,388 |
Southwest Banc Shares, Inc. [Member] | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items] | |
Contractually required payments | 925 |
Cash flows expected to be collected | 706 |
Fair value of loans acquired | 657 |
Sunshine Financial, Inc. [Member] | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items] | |
Contractually required payments | 4,194 |
Cash flows expected to be collected | 3,894 |
Fair value of loans acquired | 3,837 |
FPB Financial Corp. [Member] | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items] | |
Contractually required payments | 9,939 |
Cash flows expected to be collected | 8,604 |
Fair value of loans acquired | 7,978 |
FMB Financial Corp. [Member] | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items] | |
Contractually required payments | 4,715 |
Cash flows expected to be collected | 4,295 |
Fair value of loans acquired | $ 3,916 |
LOANS - Changes in the carrying
LOANS - Changes in the carrying amount and accretable yield for purchased credit impaired loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
LOANS | ||
Balance at beginning of period, Accretable Yield | $ 3,835 | $ 836 |
Reclassification, Accretable Yield | 859 | |
Additions,Accretable Yield | 307 | 762 |
Accretion, Accretable Yield | (476) | (200) |
Transfer from non-accretable,Accretable Yield | 48 | 129 |
Charge-off, Accretable Yield | (10) | |
Balance at end of period, Accretable Yield | $ 3,714 | $ 2,376 |
LOANS - Additional Detail of Im
LOANS - Additional Detail of Impaired Loans Broken Out According to Class (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no a related allowance, Recorded Investment | $ 4,641 | $ 7,595 |
Impaired loans with no related allowance, Unpaid Balance | 5,213 | 9,639 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 14,068 | 12,668 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 14 | 526 |
Impaired loans with a related allowance, Recorded Investment | 9,880 | 5,864 |
Impaired loans with a related allowance, Unpaid Balance | 10,178 | 5,864 |
Impaired loans with a Related Allowance | 2,372 | 1,179 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 14,756 | 4,415 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 72 | 195 |
Recorded Investment | 14,521 | 13,459 |
Unpaid Balance | 15,391 | 15,503 |
Related Allowance | 2,372 | 1,179 |
Average Recorded Investment YTD | 28,824 | 17,083 |
Interest Income Recognized YTD | 86 | 721 |
Commercial, Financial And Agricultural | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no a related allowance, Recorded Investment | 671 | 709 |
Impaired loans with no related allowance, Unpaid Balance | 671 | 709 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 865 | 379 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 11 | 27 |
Impaired loans with a related allowance, Recorded Investment | 1,722 | 960 |
Impaired loans with a related allowance, Unpaid Balance | 1,723 | 960 |
Impaired loans with a Related Allowance | 427 | 329 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 2,506 | 968 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 18 | 3 |
Recorded Investment | 2,393 | 1,669 |
Unpaid Balance | 2,394 | 1,669 |
Related Allowance | 427 | 329 |
Average Recorded Investment YTD | 3,371 | 1,347 |
Interest Income Recognized YTD | 29 | 30 |
Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no a related allowance, Recorded Investment | 3,421 | 6,441 |
Impaired loans with no related allowance, Unpaid Balance | 3,896 | 8,170 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 9,100 | 7,685 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 2 | 427 |
Impaired loans with a related allowance, Recorded Investment | 7,619 | 4,512 |
Impaired loans with a related allowance, Unpaid Balance | 7,914 | 4,512 |
Impaired loans with a Related Allowance | 1,839 | 758 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 11,432 | 2,868 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 47 | 176 |
Recorded Investment | 11,040 | 10,953 |
Unpaid Balance | 11,810 | 12,682 |
Related Allowance | 1,839 | 758 |
Average Recorded Investment YTD | 20,532 | 10,553 |
Interest Income Recognized YTD | 49 | 603 |
Consumer real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no a related allowance, Recorded Investment | 545 | 445 |
Impaired loans with no related allowance, Unpaid Balance | 643 | 760 |
Impaired loans with no related allowance, Average Recorded Investment YTD | 4,076 | 4,522 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 1 | 69 |
Impaired loans with a related allowance, Recorded Investment | 478 | 366 |
Impaired loans with a related allowance, Unpaid Balance | 480 | 366 |
Impaired loans with a Related Allowance | 69 | 66 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 719 | 555 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 6 | 16 |
Recorded Investment | 1,023 | 811 |
Unpaid Balance | 1,123 | 1,126 |
Related Allowance | 69 | 66 |
Average Recorded Investment YTD | 4,795 | 5,077 |
Interest Income Recognized YTD | 7 | 85 |
Consumer installment | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no a related allowance, Recorded Investment | 4 | |
Impaired loans with no related allowance, Unpaid Balance | 3 | |
Impaired loans with no related allowance, Average Recorded Investment YTD | 27 | 82 |
Impaired loans with no related allowance, Interest Income Recognized YTD | 3 | |
Impaired loans with a related allowance, Recorded Investment | 61 | 26 |
Impaired loans with a related allowance, Unpaid Balance | 61 | 26 |
Impaired loans with a Related Allowance | 37 | 26 |
Impaired loans with a related allowance, Average Recorded Investment YTD | 99 | 24 |
Impaired loans with a related allowance, Interest Income Recognized YTD | 1 | |
Recorded Investment | 65 | 26 |
Unpaid Balance | 64 | 26 |
Related Allowance | 37 | 26 |
Average Recorded Investment YTD | 126 | 106 |
Interest Income Recognized YTD | $ 1 | $ 3 |
LOANS - Modifications of Loans
LOANS - Modifications of Loans Performing (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | $ 6,184 | $ 12,822 |
Past Due 90 days and still accruing | 989 | 1,265 |
Non-Accrual | 11,805 | 11,668 |
Total | 2,351,998 | 2,060,422 |
Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 7,549 | 5,307 |
Past Due 30-89 | 651 | 732 |
Past Due 90 days and still accruing | 58 | |
Non-Accrual | 8,664 | 8,257 |
Total | 16,922 | 14,295 |
Allowance for loan losses, Current Loans | 103 | 80 |
Allowance for loan losses, Past Due 30-89 | 13 | |
Allowance for loan losses, Non-Accrual | 144 | 110 |
Allowance for loan losses, Total | 247 | 203 |
Loans [Member] | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 1,760 | 442 |
Past Due 30-89 | 86 | |
Past Due 90 days and still accruing | 58 | |
Non-Accrual | 3,308 | 2,801 |
Total | 5,126 | 3,329 |
Loans [Member] | Commercial, Financial And Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 543 | 13 |
Past Due 30-89 | 592 | 646 |
Non-Accrual | 190 | 18 |
Total | 1,325 | 676 |
Loans [Member] | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 5,216 | 4,827 |
Past Due 30-89 | 59 | |
Non-Accrual | 5,166 | 5,425 |
Total | 10,441 | 10,252 |
Loans [Member] | Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current Loans | 30 | 25 |
Non-Accrual | 13 | |
Total | $ 30 | $ 38 |
LOANS - Risk Category of Loans
LOANS - Risk Category of Loans by Class of Loans (Excluding Mortgage Loans Held for Sale) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | $ 2,353,038 | $ 2,061,035 |
Less: Unearned discount | 1,040 | 613 |
Loans, net of unearned discount | 2,351,998 | 2,060,422 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 2,294,055 | 1,997,991 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 10,621 | 15,218 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 48,258 | 47,725 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 104 | 101 |
Commercial, Financial And Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 346,358 | 304,183 |
Loans, net of unearned discount | 346,358 | 304,183 |
Commercial, Financial And Agricultural | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 342,390 | 300,685 |
Commercial, Financial And Agricultural | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 1,117 | 842 |
Commercial, Financial And Agricultural | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 2,829 | 2,640 |
Commercial, Financial And Agricultural | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 22 | 16 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 1,517,384 | 1,332,493 |
Less: Unearned discount | 1,040 | 613 |
Loans, net of unearned discount | 1,516,344 | 1,331,880 |
Commercial Real Estate | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 1,476,941 | 1,286,151 |
Commercial Real Estate | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 7,527 | 12,401 |
Commercial Real Estate | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 32,834 | 33,856 |
Commercial Real Estate | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 82 | 85 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 454,137 | 389,949 |
Loans, net of unearned discount | 454,137 | 389,949 |
Consumer real estate | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 439,998 | 377,028 |
Consumer real estate | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 1,951 | 1,962 |
Consumer real estate | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 12,188 | 10,959 |
Installment and Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 35,159 | 34,410 |
Loans, net of unearned discount | 35,159 | 34,410 |
Installment and Other | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 34,726 | 34,127 |
Installment and Other | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | 26 | 13 |
Installment and Other | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable, gross | $ 407 | $ 270 |
LOANS - Activity in Allowance f
LOANS - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for loan losses: | ||||
Balance at beginning of period | $ 10,065 | $ 8,288 | ||
Provision for loan losses | $ 791 | $ 857 | 1,913 | 1,134 |
Charge-offs | 181 | 54 | ||
Recoveries | 294 | 144 | ||
Net Charge-offs (recoveries) | (113) | (90) | ||
Balance at end of period | 12,091 | 9,512 | 12,091 | 9,512 |
Commercial, Financial And Agricultural | ||||
Allowance for loan losses: | ||||
Balance at beginning of period | 2,060 | 1,608 | ||
Provision for loan losses | 351 | 390 | ||
Charge-offs | 6 | 5 | ||
Recoveries | 27 | 18 | ||
Net Charge-offs (recoveries) | (21) | (13) | ||
Balance at end of period | 2,432 | 2,011 | 2,432 | 2,011 |
Commercial Real Estate | ||||
Allowance for loan losses: | ||||
Balance at beginning of period | 6,258 | 4,644 | ||
Provision for loan losses | 1,666 | 476 | ||
Charge-offs | 66 | 10 | ||
Recoveries | 14 | 26 | ||
Net Charge-offs (recoveries) | 52 | (16) | ||
Balance at end of period | 7,872 | 5,136 | 7,872 | 5,136 |
Consumer real estate | ||||
Allowance for loan losses: | ||||
Balance at beginning of period | 1,743 | 1,499 | ||
Provision for loan losses | (313) | 69 | ||
Charge-offs | 42 | 7 | ||
Recoveries | 101 | 37 | ||
Net Charge-offs (recoveries) | (59) | (30) | ||
Balance at end of period | 1,489 | 1,598 | 1,489 | 1,598 |
Installment and Other | ||||
Allowance for loan losses: | ||||
Balance at beginning of period | 201 | 173 | ||
Provision for loan losses | (36) | (20) | ||
Charge-offs | 67 | 32 | ||
Recoveries | 152 | 63 | ||
Net Charge-offs (recoveries) | (85) | (31) | ||
Balance at end of period | 250 | 184 | 250 | 184 |
Unallocated | ||||
Allowance for loan losses: | ||||
Balance at beginning of period | (197) | 364 | ||
Provision for loan losses | 245 | 219 | ||
Balance at end of period | $ 48 | $ 583 | $ 48 | $ 583 |
LOANS - Loans and Allowance for
LOANS - Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Loans | ||||
Individually evaluated | $ 14,521 | $ 13,459 | ||
Collectively evaluated | 2,317,571 | 2,029,311 | ||
PCI loans | 19,906 | 17,652 | ||
Total | 2,351,998 | 2,060,422 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 2,372 | 1,179 | ||
Collectively evaluated | 9,719 | 8,886 | ||
Total | 12,091 | 10,065 | $ 9,512 | $ 8,288 |
Commercial, Financial And Agricultural | ||||
Loans | ||||
Individually evaluated | 2,393 | 1,657 | ||
Collectively evaluated | 359,396 | 302,329 | ||
PCI loans | 183 | 197 | ||
Total | 361,972 | 304,183 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 427 | 329 | ||
Collectively evaluated | 2,005 | 1,731 | ||
Total | 2,432 | 2,060 | ||
Commercial Real Estate | ||||
Loans | ||||
Individually evaluated | 11,040 | 10,932 | ||
Collectively evaluated | 1,539,832 | 1,309,322 | ||
PCI loans | 12,113 | 11,626 | ||
Total | 1,562,985 | 1,331,880 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 1,839 | 758 | ||
Collectively evaluated | 6,033 | 5,500 | ||
Total | 7,872 | 6,258 | ||
Consumer real estate | ||||
Loans | ||||
Individually evaluated | 1,023 | 804 | ||
Collectively evaluated | 377,635 | 383,368 | ||
PCI loans | 7,560 | 5,777 | ||
Total | 386,218 | 389,949 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 69 | 66 | ||
Collectively evaluated | 1,420 | 1,677 | ||
Total | 1,489 | 1,743 | ||
Installment and Other | ||||
Loans | ||||
Individually evaluated | 65 | 66 | ||
Collectively evaluated | 40,708 | 34,292 | ||
PCI loans | 50 | 52 | ||
Total | 40,823 | 34,410 | ||
Allowance for Loan Losses | ||||
Individually evaluated | 37 | 26 | ||
Collectively evaluated | 213 | 175 | ||
Total | 250 | 201 | ||
Unallocated | ||||
Allowance for Loan Losses | ||||
Collectively evaluated | 48 | (197) | ||
Total | $ 48 | $ (197) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Non-interest income | |||||
Service charges on Deposits Overdraft fees | $ 1,038 | $ 801 | $ 2,013 | $ 1,428 | |
Service charges on Deposits Other | 881 | 542 | 1,739 | 942 | |
Interchange income | 2,045 | 1,500 | 3,697 | 2,540 | |
Investment brokerage Fees | 24 | 9 | 33 | 26 | |
Net gains (losses) on OREO | (18) | (4) | (28) | 15 | |
Net gains on sale of loans | [1] | 11 | 11 | ||
Net gains (losses) on sales of of securities | [1] | (43) | (5) | (81) | (5) |
Other | 2,789 | 2,778 | 4,897 | 4,134 | |
Total non-interest income | 6,716 | 5,632 | 12,270 | 9,091 | |
Commercial Retail Bank [Member] | |||||
Non-interest income | |||||
Service charges on Deposits Overdraft fees | 1,038 | 800 | 2,012 | 1,427 | |
Service charges on Deposits Other | 880 | 541 | 1,738 | 941 | |
Interchange income | 2,045 | 1,500 | 3,697 | 2,540 | |
Investment brokerage Fees | 24 | 9 | 33 | 26 | |
Net gains (losses) on OREO | (18) | (4) | (28) | 15 | |
Net gains on sale of loans | [1] | 11 | 11 | ||
Net gains (losses) on sales of of securities | [1] | (43) | (5) | (81) | (5) |
Other | 1,138 | 650 | 2,092 | 1,207 | |
Total non-interest income | 5,064 | 3,502 | 9,463 | 6,162 | |
Mortgage Banking Division [Member] | |||||
Non-interest income | |||||
Service charges on Deposits Overdraft fees | 1 | 1 | 1 | ||
Service charges on Deposits Other | 1 | 1 | 1 | 1 | |
Other | 1,558 | 1,211 | 2,467 | 2,010 | |
Total non-interest income | 1,559 | 1,213 | 2,469 | 2,012 | |
Corporate Segment [Member] | |||||
Non-interest income | |||||
Other | 93 | 917 | 338 | 917 | |
Total non-interest income | $ 93 | $ 917 | $ 338 | $ 917 | |
[1] | Not within scope of ASC 606 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Leases | ||
Operating lease ROU assets | $ 4.4 | $ 1.8 |
Operating lease liabilities | $ 4.4 | |
Minimum [Member] | ||
Leases | ||
Remaining lease term | 1 year | |
Maximum [Member] | ||
Leases | ||
Remaining lease term | 8 years |
LEASES - Lease costs (Details)
LEASES - Lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
LEASES | ||
Operating lease costs | $ 228 | $ 350 |
Cash paid for amounts included in the measurement of lease liability | ||
Operating cash flows from operating leases | $ 228 | $ 350 |
LEASES - Information related to
LEASES - Information related to operating leases (Details) | Jun. 30, 2019 |
LEASES | |
Weighted-average remaining lease term - operating leases | 6 years 2 months 12 days |
Weighted-average discount rate - operating leases | 3.10% |
LEASES - Maturity of remaining
LEASES - Maturity of remaining lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
LEASES | ||
Remaining 2019 | $ 441 | |
2020 | 915 | |
2021 | 784 | |
2022 | 737 | |
2023 | 700 | |
2024 and thereafter | 1,211 | |
Total lease payments | 4,788 | |
Less: Interest | (433) | |
Present value of lease liabilities | $ 4,355 | $ 1,800 |
LEASES - Minimum future lease p
LEASES - Minimum future lease payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
LEASES | |
2019 | $ 784 |
2020 | 463 |
2021 | 347 |
2022 | 256 |
2023 | 229 |
2024 and thereafter | 197 |
Total minimum lease payments | $ 2,276 |
SUBSEQUENT EVENTS_OTHER (Detail
SUBSEQUENT EVENTS/OTHER (Details) - Florida Bancorp, Inc., [Member] - USD ($) $ in Millions | Jul. 22, 2019 | Jun. 30, 2019 |
SUBSEQUENT EVENTS/OTHER | ||
Consolidated assets | $ 451 | |
Subsequent Event [Member] | ||
SUBSEQUENT EVENTS/OTHER | ||
Purchase Price | $ 85 |